Taiwan's 2027 defence spending to rise 16%: Official media reports
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- Taiwan's Cabinet will propose a 16% annual rise in defence spending for 2027, with the budget exceeding NT$1 trillion (US$31 billion) for the first time, according to the official Central News Agency.
- The proposed budget of more than NT$1.1 trillion, to be unveiled on Aug 20, includes funding for the coast guard, veterans, and special projects, and will exceed 3% of GDP — as it does this year.
- Taiwan faces parallel pressure from Washington to spend more on its own defence, mirroring US demands on European allies.
- China, which considers Taiwan its own territory, has ramped up military and political pressure, with its military operating almost daily around Taiwan and holding periodic war games — the most recent in late December.
- In March, China unveiled a 7% rise in its own 2025 defence spending to 1.91 trillion yuan ($283.08 billion), underscoring the scale gap with Taiwan's outlay.
Why it matters: Taiwan's move to push defence spending past NT$1 trillion while maintaining 3%+ of GDP reflects a dual response to Beijing's near-daily military operations around the island and Washington's parallel demand — mirroring pressure on Europe — for allies to pay more of their own defence tab.
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