Taiwan Boosts Defence Budget Amid Rising Chinese Pressure

Taiwan's cabinet has announced a 7.7% increase in 2025 defence spending, totalling T$647 billion ($20.25 billion), which accounts for 2.45% of GDP. The move comes as a response to escalating military and political pressure from China, which Taiwan's government firmly rejects. The budget includes significant investments in new fighter jets and missile production.

Taiwan's cabinet has announced that defence spending for 2025 will see a significant 7.7% increase year-on-year, reaching T$647 billion ($20.25 billion).

This defence expenditure, which will account for 2.45% of the nation's GDP, surpasses the projected economic growth rate. The decision aligns with Taiwan's strategy to modernise its military amid rising threats from China.

The budget includes a special allocation of T$90.4 billion for purchasing new fighter jets and enhancing missile production. This move follows China's own 7.2% increase in defence spending, highlighting the escalating military competition in the region.