Taiwan's 2027 defence spending to rise 16%: Official media reports — SkimNews
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- Taiwan's Cabinet will propose a 16% annual rise in 2027 defense spending, pushing the budget past NT$1 trillion (US$31 billion) for the first time, per the Central News Agency (Aug 9).
- The proposed NT$1.1 trillion budget, to be unveiled Aug 20, covers the coast guard, veterans, and special projects, and will exceed 3% of GDP for a second consecutive year.
- Taipei faces simultaneous pressure from China, whose military operates 'almost daily' around Taiwan, and from Washington, which is pushing allies to spend more on self-defense, mirroring US demands on Europe.
- Taiwan's military modernization includes developing made-in-Taiwan submarines as a core policy platform.
- For scale, China unveiled a 7% rise in its own defense spending in March, reaching 1.91 trillion yuan ($283.08 billion)—meaning Taiwan's proposed 16% hike grows the gap at more than double Beijing's pace.
Why it matters: Taiwan's 16% proposed defense bump is more than double China's 7% growth rate, signaling Taipei is heeding Washington's demands to carry more of its own deterrence load while keeping spending above 3% of GDP. The NT$1.1 trillion blueprint would fund submarine development and coast guard expansion just as Chinese military activity around the island intensifies.
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