August 22, 2025

In a bold move to stand tall against China’s rising military pressure, Taiwan is giving its defense budget a spicy 22.9% boost for 2026. This hike will push Taiwan’s defense spending above 3% of its GDP, hitting T$949.5 billion (about $31.27 billion). It’s the first time since 2009 that Taiwan’s budget crosses this important 3% mark, showing just how serious it is about protecting itself. Why is Taiwan doing this now? Well, China has been flexing its muscles near Taiwan for years, flying almost daily air missions close by and holding regular war games, the latest in April. Beijing claims Taiwan as its own, but Taiwan fiercely rejects those claims. On top of that, Taiwan wants to send a strong message to the United States and the world that it’s committed to building a robust defense. Taiwan Premier Cho Jung-tai said the increase is “another concrete demonstration to the world and to our people of our determination and ability to safeguard national sovereignty and security, maintain stability and security in the Indo-Pacific region, and fulfil our shared responsibilities to the world.” His words add a patriotic zing to the increased spending. For the first time, Taiwan’s coast guard is included in this defense budget, following a “NATO model,” according to Cho. The coast guard often faces off with China’s coast guard and would join the navy in wartime. As one official explained, "They are standing on the frontline," highlighting the coast guard's crucial role in fending off "grey-zone tactics," like China's near-constant patrols around Taiwan’s islands. This massive budget plan also sets aside T$117.6 billion for exciting new gear — including fresh fighter jets and stronger naval defenses. Taiwan is also working on homegrown submarines as part of its modernization push. Meanwhile, China is not sitting still. It recently announced a hefty 7.2% increase in its own defense budget to 1.78 trillion yuan ($248.17 billion), outpacing its economic growth target. Armed with aircraft carriers, stealth jets, and missiles, China’s military might is growing fast. This tug of war over defense budgets shows how Taiwan is doubling down to protect its freedom and keep the Indo-Pacific safe. With a bigger wallet now, Taiwan is ready to meet the challenge head-on!

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Tags: Taiwan defense spending, China military pressure, Taiwan coast guard, Indo-pacific security, Us taiwan relations, Military modernization,