Taiwan Increases Defense Budget Amid Rising Tensions with China

Taiwan plans a 7.7% increase in defense spending next year, surpassing projected economic growth. The heightened budget aims to bolster deterrence against China, including new jets and missiles. This move comes amid China's increased military pressure on the island, which it considers its own territory.

Taiwan's defence spending is set to increase by 7.7% next year, the cabinet announced Thursday, aiming to outpace expected economic growth as the island boosts its arsenal of fighter jets and missiles to counter Beijing's escalating threats.

The 2025 defence budget will rise to T$647 billion ($20.25 billion), making up 2.45% of gross domestic product, surpassing the government's projected economic growth of 3.26%. This includes a T$90.4 billion special budget for new fighter jets and missile production, part of a broader T$240 billion military investment plan revealed in 2021.

Military modernization has become a cornerstone of Taiwan's policy, with the government continually pledging increased defense spending amidst China's near-daily air force missions and recent war games around the island. The new budget awaits parliamentary approval, where the ruling Democratic Progressive Party faces opposition from the Kuomintang over contested reforms that seek to increase parliamentary oversight.