Taiwan Plans Record Defense Budget to Counter China, Report Says
Taiwan plans to spend a record NT$1.1 trillion on its military in 2027, a semi-official media outlet reported, a move that comes as the US
Taiwan plans to spend a record NT$1.1 trillion on its military in 2027, a semi-official media outlet reported, a move that comes as the US pushes it to do more to deter China. The defense budget for the year would exceed 3% of GDP, the Taipei-based Central News Agency reported, citing a person familiar with the matter. The figure compares with the NT$949.5 billion the cabinet earlier proposed for this year. The cabinet is set to discuss the spending plan on Aug.
20. The final amount could change because it needs the approval of the legislature, which the opposition controls. Taiwan President Lai Ching-te has made stepping up defense spending and military preparation a focus since taking office more than two years ago. The report about the budget plan comes as the military holds its flagship annual Han Kuang exercises. In February last year, Lai set a target of spending 3% of gross domestic product on the armed forces.
That move followed Trump questioning the democracy’s commitment to protecting itself from China, which sees Taiwan as part of its territory that must be brought under its control by force if needed. Taipei rejects Beijing’s view, and condemns China for stepping up military and coast guard activity near Taiwan in recent years. Earlier this year, Taiwanese lawmakers approved a $24.8 billion special defense budget — a figure that was less than Lai sought. Some of the funds will go toward the T-Dome air-defense system that is intended to protect the island from aerial threats.
Taiwan’s initial military budget for this year surged by 23%, though officials included money for the coast guard and veteran pensions in the figure for the first time. The central government budget for 2026, including military funds, hasn’t been approved by the legislature yet due to a standoff between political parties. ©2026 Bloomberg L.P.
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