3 weeks ago
Taiwan to raise defence spending above T$1 trillion in 2027
Taiwan is a big island near China.
China's military is much bigger than Taiwan's, with many more ships, planes and soldiers.
Taiwan knows it cannot build as many weapons as China.
So Taiwan has a different plan.
It wants to buy and build many small, cheaper weapons, like flying drones and moving missile launchers.
These weapons can surprise an enemy and are hard to destroy.
Taiwan plans to spend more than T$1 trillion on defence in 2027, which is a record for the island.
The official plan will be announced on August 20.
Taiwan learned lessons from the war in Ukraine, where small drones made a big difference in fighting.
The goal is to make any invasion of Taiwan so difficult and expensive that China would not want to try.
Taiwan's Cabinet expects to propose a 16% increase in defence spending, taking the 2027 budget above T$1.1 trillion (around US$31 billion).
The proposal, expected to be unveiled on August 20, keeps spending above 3% of Taiwan's GDP — a record for the island.
Rather than matching China weapon-for-weapon, Taiwan is investing in asymmetric systems such as drones, unmanned vessels and mobile missiles — a strategy US officials have described as a 'hellscape'.
China's official 2026 defence budget rose 7% to about US$283 billion, roughly nine times Taiwan's proposed budget.
Taiwan aims to lift monthly drone production from about 15,000 units to more than 100,000 by 2030, with exports about 50% of output value.
- Who
- Taiwan's Cabinet, backed by President Lai Ching-te, is proposing the increase; China's People's Liberation Army is the military it aims to deter.
- What
- A record 2027 defence budget above T$1.1 trillion (around US$31 billion) focused on drones, unmanned vessels, mobile missiles, and a new Littoral Combat Command using Hsiung Feng and US-made Harpoon missiles.
- Where
- Taiwan, particularly across the Taiwan Strait, where Chinese aircraft and naval vessels have increased activity.
- When
- The proposal is expected to be unveiled on August 20 for 2027, with the final figure decided through the budget process.
- Why
- To make a potential Chinese invasion difficult, costly and uncertain through asymmetric warfare, and to signal to Washington that Taiwan will carry more of its own defence burden.
Key facts
- Proposed 2027 defence budget
- Above T$1.1 trillion (around US$31 billion)
- Budget increase
- 16% year-on-year
- Share of GDP
- Above 3%
- Announcement date
- August 20
- China's 2026 defence budget
- About US$283 billion, up 7%
- Budget comparison
- China's budget is roughly nine times Taiwan's
- Drone production target
- From about 15,000 units a month to more than 100,000 by 2030
- 2025 drone output value
- NT$12.9 billion (around US$408 million), up 2.5-fold
Quotes
Taiwan’s Cabinet
Taiwan government officials proposing the 2027 defence budget
“Taiwan is likely to raise defence spending above T$1 trillion for the first time in 2027 as it bets on drones, mobile missiles and asymmetric warfare to deter a potential Chinese invasion”
firstpost.com
“Taiwan’s Cabinet is expected to propose a 16 per cent increase in defence spending next year, taking the budget above T$1.1 trillion”
firstpost.com
Sources
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