Taiwan announced plans to significantly raise its defense spending to deter potential aggression from China, President Lai Ching-te stated on Saturday. The move comes as Beijing intensifies military pressure to enforce its sovereignty claim over the self-governed island.
The Lai administration has designated a record NT$1.1 trillion, approximately $34.5 billion, for national defense in 2027. This allocation represents more than 3% of Taiwan’s GDP. The island’s population of 23 million remains under the threat of Chinese attack, as Beijing has not ruled out the use of force to unite the territories.
Addressing the nation during National Day celebrations, President Lai emphasized that the primary objective of the increased investment is to prevent conflict rather than to provoke it. “Our aim in increasing investment in national defence is not to provoke, but to deter war,” Lai said in his annual speech outside the Presidential Office in Taipei. Thousands of attendees, including foreign diplomats, were present for the event.
Lai reiterated that Taiwan does not seek hegemony or dominance over others. He cautioned against taking peace for granted and accused China of utilizing both military maneuvers and grey-zone tactics to alter the status quo across the Taiwan Strait. While welcoming dialogue between the United States and China, the President insisted that Beijing must acknowledge the right of the Taiwanese people to exist.
The increase in military expenditure follows a trend set by previous governments aiming to strengthen defenses against a potential invasion and demonstrate to the United States Taiwan’s commitment to its own security.
Washington remains Taipei’s crucial security ally, despite the U.S. switching diplomatic recognition to Beijing nearly five decades ago. However, tensions have surfaced regarding arms sales. President Donald Trump raised concerns in May by suggesting that weapons sales to Taiwan could serve as leverage in negotiations with Chinese President Xi Jinping. Taiwan is currently awaiting approval for a $14 billion arms deal, which includes Patriot air defense systems.
During a recent summit between Trump and Xi in Washington, discussions focused heavily on trade and artificial intelligence. The issue of Taiwan was reportedly addressed only in closed-door sessions, fueling anxieties in Taipei about shifting U.S. policy.
In response to China’s expanding arsenal, which features stealth fighters, aircraft carriers, and advanced missile systems, Taiwan is modernizing its armed forces. Prior to the President’s speech, Taiwanese fighter jets and Chinook helicopters carrying large flags flew over the capital.
The U.S. government welcomed Taiwan’s commitment to regional stability. A senior American official noted that while China’s rhetoric is routine, it does not justify coercive actions. China’s Taiwan Affairs Office has yet to respond to requests for comment. Beijing continues to label Lai a separatist and has rejected his proposals for talks.
The National Day festivities also marked the 115th anniversary of the 1911 revolution, which overthrew the Qing dynasty and led to the establishment of the Republic of China. The longstanding dispute between China and Taiwan originated from the Chinese civil war, when nationalist leader Chiang Kai-shek retreated to the island in 1949 after defeat by Mao Zedong’s communist forces.
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