Taiwan to boost military spending to 'deter war' with China — SkimNews
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- Taiwan's government allocated a record NT$1.1 trillion ($34.5 billion) defense budget for 2027, equivalent to more than 3% of GDP, with President Lai Ching-te saying the goal is to "deter war" not provoke it, in his National Day address on October 10, 2026.
- Taiwan is awaiting Trump administration approval of $14 billion in US weapons sales, including the Patriot air defense system.
- Donald Trump raised concerns in Taipei in May when he suggested US arms sales to Taiwan could be used as a bargaining chip in negotiations with Chinese President Xi Jinping following their meeting in Beijing.
- At a US-China summit in September in Washington, trade and artificial intelligence dominated the agenda while Taiwan was discussed only behind closed doors.
- President Lai accused China of using military and grey-zone activities to change the status quo across the Taiwan Strait and demanded Beijing respect "the right of the people of Taiwan to exist."
- The United States welcomed Lai's commitment to peace and stability, with a senior administration official stating that "a routine speech is no justification for aggressive or coercive actions" by China.
- China's Taiwan Affairs Office did not immediately respond to a request for comment; Beijing has rejected Lai's talks offers, calls him a "separatist," and has never renounced the use of force.
Why it matters: Taipei is signaling it will shoulder more of its own defense burden as it waits on $14 billion in pending US arms sales — including Patriot systems — that Trump has yet to approve after his May comments floating those sales as a bargaining chip with Xi Jinping. A budget crossing 3% of GDP is unprecedented for Taiwan and reflects Lai's attempt to demonstrate seriousness to a White House that has publicly hedged on the issue.
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