Archive · 9 Aug 2026
Taiwan's 2027 Defence Spending to Rise 16%, Exceeding $1 Trillion
Taiwan is a place that wants to keep its own way of life, but its big neighbour China says Taiwan belongs to it.
That is why Taiwan wants a stronger military to protect itself.
Taiwan's government now plans to spend 16% more money on its military next year than it does this year.
For the first time, the defence budget will be more than one trillion Taiwan dollars.
The money will pay for things like the coast guard, veterans and special military projects.
China also spends a lot on its military and its planes and ships practise near Taiwan almost every day.
Taiwan's leader, Lai Ching-te, watched military training drills in a city called Taoyuan.
He said that practising and preparing in peacetime makes the country stronger and safer.
The United States also wants Taiwan to spend more on defending itself, and Taiwan's leader agrees.
Both sides are getting ready because they disagree about what Taiwan's future should be.
Taiwan's cabinet will propose a 16% annual rise in defence spending for 2027, exceeding T$1 trillion ($31 billion) for the first time.
The proposed budget of more than T$1.1 trillion, to be unveiled on August 20, will — like this year — exceed 3% of GDP.
The spending includes funding for the coast guard, veterans and special projects as Taiwan pursues military modernisation, including made-in-Taiwan submarines.
China, which views Taiwan as its own territory, raised its defence spending by 7% to 1.91 trillion yuan ($283.08 billion) and operates militarily around Taiwan almost daily.
President Lai Ching-te, watching the ongoing Han Kuang exercises in Taoyuan, said every bit of solid preparation in peacetime adds stability and strength for the nation.
- Who
- Taiwan's cabinet and President Lai Ching-te, with pressure from Washington and tensions with China.
- What
- A proposed 16% annual rise in Taiwan's defence spending for 2027, exceeding T$1 trillion for the first time.
- When
- Reported on Sunday, August 9; the budget is to be unveiled on August 20 for 2027.
- Where
- Taiwan, including a defence budget proposal from the cabinet and military exercises in Taoyuan.
- Why
- To bolster Taiwan's military amid China's growing military and political pressure; China claims Taiwan as its own territory, which Taipei rejects.
Taipei and Washington's View
Beijing's View
Taiwan's Status
Taipei and Washington's View
Taiwan is democratically governed and only Taiwan's people can decide their future; Taipei strongly rejects China's claim that Taiwan is its own territory.
Beijing's View
China views Taiwan as its own territory and refuses to talk to President Lai, calling him a 'separatist'.
Military Build-Up and Pressure
Taipei and Washington's View
Taiwan must strengthen its military, with Washington urging Taipei to spend more on its own defence — a call Lai has embraced — saying solid preparation adds stability and strength.
Beijing's View
China has ramped up military and political pressure over recent years to assert its claims to Taiwan, operating militarily around Taiwan almost daily and holding periodic war games.
- Proposed defence budget
- More than T$1.1 trillion (over $31 billion)
- Annual increase
- 16%
- Share of GDP
- Over 3%
- Budget unveiling date
- August 20
- China's defence spending rise
- 7%, to 1.91 trillion yuan ($283.08 billion)
- Exchange rate
- $1 = 32.2360 Taiwan dollars
- Reported by
- Central News Agency via Reuters
- Context
- Annual Han Kuang military exercises ongoing