Archive · 20 Aug 2026
Taiwan Proposes Record Defence Budget as China Pressure Grows
Taiwan wants to spend more money on its military next year.
The proposed budget would be about $35 billion, the largest Taiwan has ever planned.
Taiwan says this is needed because China regularly sends military aircraft and ships near the island.
China says Taiwan is part of its territory and has not ruled out using force.
Taiwan’s president says stronger defence can help protect peace.
The United States has also urged Taiwan to spend more on defence.
Taiwan recently expanded military exercises to practise responding to a possible attack.
The proposed budget still needs approval from Taiwan’s legislature.
Taiwan’s government proposed a record defence budget of 1.12 trillion Taiwan dollars, or about $35 billion, for next year.
The proposed spending would exceed 3% of GDP and represent an 18% increase from last year’s proposed budget.
President Lai Ching-te has pledged to raise defence spending to 5% of GDP by 2030.
Taiwan says the increase is intended to strengthen deterrence as China conducts regular military activity near the island.
The proposal must be reviewed by Taiwan’s opposition-controlled legislature after the previous central budget faced a 266-day delay.
- Who
- Taiwan’s government, led by President Lai Ching-te, proposed the budget amid pressure from China.
- What
- Taiwan proposed a defence budget of 1.12 trillion Taiwan dollars, approximately $35 billion, for next year.
- When
- The proposal was announced on Thursday; it is intended for next year, with legislative review expected before late August.
- Where
- Taiwan, amid military activity by China around the island.
- Why
- Taiwan says increased spending will strengthen deterrence and help respond to China’s military and political pressure.
Taiwan and United States
China’s position
Reason for military spending
Taiwan and United States
Taiwan says higher defence spending is an investment in peace and a way to strengthen deterrence against China’s military threats. The United States has urged Taiwan to increase its defence spending.
China’s position
China asserts that Taiwan is part of its sovereignty and has not renounced the use of force to bring the island under its control.
Military activity around Taiwan
Taiwan and United States
Taiwan is responding to regular Chinese military aircraft, coast guard ships and other vessels near the island, as well as large-scale exercises, by expanding its defence preparations and drills.
China’s position
China has increased military and political pressure around Taiwan while maintaining its claim that the island belongs to China.
U.S. involvement
Taiwan and United States
The United States maintains extensive unofficial relations with Taiwan, is required under U.S. law to provide it with the means to defend itself, and has long been its main informal arms supplier.
China’s position
China regards the Taiwan issue as a potential source of conflict with the United States; President Xi Jinping warned that the countries could clash over Taiwan if it was not handled properly.
- Proposed budget
- 1.12 trillion Taiwan dollars, approximately $35 billion
- Share of GDP
- More than 3% of estimated GDP
- Year-on-year increase
- 18% from last year’s proposed budget
- Long-term target
- President Lai Ching-te has pledged to reach 5% of GDP in defence spending by 2030
- Legislative process
- The proposal will be sent to Taiwan’s opposition-controlled legislature for review before late August
- Recent budget delay
- Taiwan’s 2026 central government budget was passed after a record 266-day delay
- Military exercises
- Taiwan recently intensified its annual Han Kuang drills, including more reservists and civilians