Taiwan plans record defense spending as China invasion threat looms
Taiwanese military (photo: Getty Images)
Taiwan's Cabinet will propose increasing defense spending by 16% in 2027. It will exceed 1 trillion Taiwan dollars for the first time, according to Reuters.
What the budget will be
Taiwan's Central News Agency reports that the proposed budget will exceed 1.1 trillion Taiwan dollars. It includes funding for the coast guard, veterans, and special projects and, as this year, will exceed 3% of gross domestic product.
The proposal is expected to be presented on August 20, with detailed figures due at the Cabinet's final meeting.
Why Taiwan increases spending
The decision comes as China, which considers democratic Taiwan part of its territory, has stepped up military and political pressure in recent years. Taipei strongly rejects Beijing's claims.
At the same time, Taiwan faces calls from Washington to increase its defense spending. The United States places similar pressure on Europe.
Taiwanese President Lai Ching-te has welcomed the calls.
The government has made military modernization a key political priority and has repeatedly pledged to increase defense spending, including funding for the development of domestically built submarines.
Threat from China
Chinese military forces operate around Taiwan almost daily and periodically conduct military drills. Beijing is also rapidly modernizing its armed forces, equipping them with new aircraft carriers, stealth fighters, and missiles.
In March, China announced that it would increase its defense spending by 7% this year, to 1.91 trillion yuan (about $283 billion).
Beijing refuses to negotiate with Lai, calling him a separatist.
As previously reported, Taiwan is closely watching Russia's war against Ukraine, seeing it as a possible scenario for its own confrontation with China.
The island is taking lessons from Ukraine, which has effectively used naval drones against Russia's Black Sea fleet, and is studying how to apply that experience to repel a possible invasion.
Taipei also plans to build millions of drones for its own defense, involving a company whose software is already used in Ukrainian combat drones.
