Taiwan will spend a record amount on defense next year, boosting its expenditure for eight straight years as it tries to deter an increasingly assertive China.
The cabinet will increase military spending to NT$647 billion (US$20.2 billion) next year, an increase of 7.7% from the previous year, according to the budget proposal on Thursday. That accounts for 2.45% of Taiwan’s estimated GDP in 2025, in line with recent years.
Taiwan is beefing up defense spending as it faces growing threats from China, which claims the self-governed island as part of its territory. Beijing has vowed to bring Taiwan under its control someday, by force if necessary. President Xi Jinping has ramped up military and diplomatic pressure on the archipelago in recent years, stoking fears that tensions could erupt into an actual conflict.
Taiwan also wants to demonstrate its commitment to its own security. Premier Cho Jung-tai in July touted the island’s moves to increase defense spending and extend military conscription after former US President Donald Trump said in a Bloomberg Businessweek interview that Taiwan should pay for America’s protection against Chinese military aggression.
The latest budget proposal is the first since President Lai Ching-te took office in May. It’s still subject to approval from the legislature, where the opposition parties jointly hold a slim majority.
(Bloomberg)
A battle tank participates in the Han Kuang military exercise in New Taipei City, Taiwan in 2023. (I-Hwa Cheng/Bloomberg)
