Taiwan's Defense Budget Surges 16%, Exceeds NT$1 Trillion for the First Time

U.S. Pressure for Increased Spending Amid Chinese Military Threat
Taiwanese Military Focuses on Coastal Defense Drills

AFP Yonhap News

Taiwan's national defense budget for next year is set to surge by 16% compared to this year, marking a new all-time high. This sharp increase is primarily attributed to China’s growing military threat and direct pressure from the U.S. administration under President Donald Trump to boost defense spending.

According to the state-run Central News Agency (CNA), the Taiwanese government has set next year's defense budget at 1.1 trillion Taiwan dollars (approximately 4.8 trillion yen or about 4.8 trillion won), reflecting a 16% increase over this year. The 2027 defense budget includes the Coast Guard, support for retired military personnel, and allocations for special projects. CNA reported that detailed budget items will be made public following the budget review session scheduled for August 20.

The substantial hike in the budget comes amid increasingly frequent military threats from China. The Chinese military regularly conducts live-fire drills in the Taiwan Strait, steadily intensifying pressure on Taiwan. On July 20, Chinese helicopters and drones entered Taiwan's restricted flight zone for the first time.

Analysts also point to demands from the United States for increased defense spending as a significant factor. Taiwanese President Lai Ching-te has made military modernization a central policy and has repeatedly pledged to Washington to expand defense expenditures, including through the development of domestically-produced submarines. In both this year and the next, Taiwan has set a defense budget exceeding 3% of its gross domestic product (GDP), in line with requests from President Trump.

Back in May, the U.S. expressed strong opposition when Taiwan’s special defense budget was cut. On May 8, the Taiwanese parliament slashed the special defense budget by nearly 38%, approving only 780 billion Taiwan dollars (about 3.7 trillion yen or about 3.7 trillion won) out of the originally proposed 1.25 trillion Taiwan dollars (about 5.9 trillion yen or about 5.9 trillion won). In response, the U.S. Department of State issued a statement criticizing the delay in implementing defense funding as tantamount to “a concession to the Chinese Communist Party.”

Meanwhile, starting on August 5, Taiwan has been conducting its largest annual joint military exercise, Han Kuang, which will last for ten days. This year's exercise focuses heavily on coastal defense drills simulating a Chinese amphibious invasion. President Lai is also inspecting the training in person, boarding naval vessels and armored vehicles as part of his tour.

This content was produced with the assistance of AI translation services.