Taiwan’s 2027 defence spending to rise 16%

Taiwan's cabinet plans to propose a 16% increase in its defence spending for 2027, bringing it above T$1 trillion (US$31 billion) for the first time. This budget surpasses 3% of the island's GDP, as detailed in a report by the official Central News Agency. The proposal comes amid China's growing military and political pressure on Taiwan, which views the democratic nation as its own territory.

Meanwhile, the United States has been urging Taiwan to boost its own defence capabilities, mirroring the pressure exerted on European nations. President Lai Ching-te has welcomed these demands, emphasizing Taiwan's commitment to military modernisation, including the development of domestically-produced submarines. China's military frequently operates around Taiwan, conducting regular war games and modernising its arsenal with new aircraft carriers, stealth fighter jets, and missiles.

In March, China announced a 7% rise in its defence spending to 1.91 trillion yuan (US$283.08 billion). President Lai has rejected China's diplomatic overtures, stating that only Taiwan's people can decide their future. The nation is currently engaged in annual military exercises, with President Lai affirming that each drill enhances the military's confidence and preparedness.