The Taiwanese government proposed a record defense budget of 1.12 trillion Taiwanese dollars (35 billion US dollars) for next year on Thursday, indicating increased efforts to deter military threats from China. The increase in military spending comes amid growing military and political pressure from China in recent years, as Beijing continues to assert that Taiwan is part of its sovereign territory.
According to Taiwan’s plans, the island’s defense spending next year will exceed 3% of its gross domestic product (GDP). This is 18% more than envisioned in the proposed budget for 2026, according to a government statement. China regularly sends military aircraft, as well as coast guard and other vessels to Taiwan, occasionally conducting large-scale military exercises. Beijing has not ruled out the use of force to establish control over the island.
The government noted that its overall spending plans, including defense, will be submitted to the opposition-controlled legislature for consideration by the end of August. However, this process may face certain difficulties. The legislative body approved the central government’s budget for 2026 only last Friday, after a record delay of 266 days, reported Taiwan’s Central News Agency.
Increase in defense spending and exercises
Taiwanese President Lai Ching-te previously pledged to increase defense spending to 5% of the island’s GDP by 2030. On Monday, Lai stated that next year’s defense budget will exceed 1 trillion Taiwanese dollars for the first time, adding that investing in national defense is an investment in peace.
Earlier this month, the island intensified its annual Han Kuang exercises aimed at practicing responses to a possible military invasion by China. The exercises involved reservists and more civilians, focusing on realistic scenarios. Mobile internet in some parts of Taiwan temporarily slowed to speeds sufficient only for text messages. Previously, urban resilience exercises in Taipei largely went unnoticed as they did not cause significant disruptions.
US position and historical context
The United States has urged Taiwan to increase its defense spending. Washington does not have official diplomatic relations with Taiwan but maintains broad unofficial ties and, under US law, is obligated to provide Taiwan with the means for self-defense. In this context, the US has long remained Taiwan’s main unofficial security partner and arms supplier, causing tension in relations with Beijing.
When US President Donald Trump visited Beijing in May, Chinese leader Xi Jinping warned him that a conflict could arise between the two countries over Taiwan if the issue is not properly resolved. After Trump‘s trip to Beijing, he stated that arms sales to Taiwan are a “very good bargaining chip” in relations with China, increasing concerns on the island.
China and Taiwan have been governed separately since 1949, when a civil war brought the Communist Party to power in Beijing. The defeated forces of the Nationalist Party fled to Taiwan. Since then, the island has functioned with its own government.
Source: Clarín
