China: Taiwan likely to increase defense budget by 16 percent

Taiwan is set to massively increase its defense spending amid growing pressure from China. The government will propose a 16 percent increase for 2027, the Central News Agency reported on Sunday. This would be the first time the defense budget has exceeded one trillion Taiwan dollars (around 27 billion euros).

China views democratically governed Taiwan as part of its territory and regularly threatens military conquest. The government in Taipei strongly rejects Beijing's claims.

The move is also in response to demands from Washington. The US, as Taiwan's most important international supporter and arms supplier, has long been urging the island nation to spend more on its own defense.

The new budget, to be unveiled on August 20, is expected to exceed three percent of gross domestic product. The government of President Lai Ching-te has made military modernization a key policy goal. It is pushing ahead with the development of its own submarines, among other things.

China, on the other hand, is also massively modernizing its armed forces and regularly has its air force and navy operate near Taiwan. In March, the Beijing government announced a seven percent increase in its defense budget to around 245 billion euros.

The announcement coincides with the annual "Han Kuang" military exercise. During a visit to the maneuvers on Sunday, President Lai said every exercise is a valuable experience that strengthens the military's confidence. "Every solid preparation in peacetime provides more stability and strength for our nation," Lai was quoted as saying on his Facebook account.

The Beijing government refuses to talk to Lai and calls him a "separatist".