Taiwan forced to build Iron Dome-inspired missile defences amid renewed Chinese invasion threat

The system, known as "Taiwan Dome" or "T-Dome", will employ radar detection to track incoming projectiles and launch interceptor missiles.

Mr Lai warned that "China's threats to Taiwan and the Indo-Pacific region are escalating," citing military incursions, maritime grey zone operations and disinformation campaigns affecting Japan, the Philippines and the Taiwan Strait.

The announcement follows a recent flare-up in regional tensions after Japanese Prime Minister Sanae Takaichi suggested a Chinese assault on Taiwan could represent a "survival-threatening situation" for Japan.

Beijing reacted furiously to her remarks, with the Chinese Consul-General in Osaka, Xue Jian, declaring that "the dirty neck that sticks itself in must be cut off."

The diplomatic dispute has persisted for weeks, with Beijing lodging complaints at the United Nations and contacting President Trump directly.

But amid the rising threat, Taiwan's military planners recognise their forces cannot match China's conventional capabilities.

The island's defence strategists have already studied Ukrainian and Israeli tactics for resisting much bigger adversaries.

Washington, meanwhile, has responded enthusiastically to Taiwan's defensive preparations.

The US State Department said the move "supports Taiwan's acquisition of critical defence capabilities, commensurate with the threat it faces."

American officials have long encouraged Taipei to strengthen its own defensive capabilities rather than depend solely on US military assistance.

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Senator Roger Wicker, who chairs the Senate Armed Services Committee, praised the budget as "yet another demonstration of Taiwan's resolve and commitment to its self-defence".

Mr Wicker urged the Taiwanese Parliament to approve the funding quickly, saying: "Doing so can demonstrate that legitimate political differences will be set aside when it comes to matters related to the urgent needs associated with the defence of Taiwan."

Across the water, Beijing has committed to modernising its military forces to achieve the capability of seizing Taiwan by 2027.

The two-year window is said to be China's strategic goal for completing preparations that would enable the People's Liberation Army to mount a successful invasion.

Donald Trump, however, has asserted that Xi Jinping gave him personal assurances that no invasion would occur while he sits in the White House.

The assurances, if accurate, could push back concerns about imminent military action against the island to 2029.

Taiwan's defensive preparations continue regardless, with Mr Lai emphasising that the territory "must demonstrate our determination and take on a greater responsibility in self-defence."