Taiwan President says government to propose record defence spending for 2027

Taiwan’s government will propose record defence spending for 2027, President Lai Ching-te said on Monday, as the island democracy faces growing military pressure from China.

Taipei’s announcement comes as governments around the world boost defence spending in the face of intensifying conflicts, and growing concern about US commitment to the Asia-Pacific region. Beijing has been claiming Taiwan is part of its territory, and has threatened to use force to annex the island of 23 million people.

“Next year’s total defence budget — including both the annual budget and the special budget — will exceed NT$1 trillion for the first time, reaching NT$1.1225 trillion ($35.2 billion),” Lai said in a statement issued by the Presidential Office.

Taiwan has been boosting defence spending for years and acquiring smaller and more nimble weaponry, including drones, to enable its military to wage asymmetric warfare against China. Under intense US pressure to cough up more on security, Lai’s government has vowed to increase defence spending to five percent of GDP by 2030.

But Lai’s government has been at loggerheads with Taiwan’s opposition parties, which have a majority in parliament, over how much to spend on boosting the island’s defence capabilities.