Taiwan Eyes Record $33 Billion Defense Boost Amid China Threats
- by Admin.
- Sep 12, 2025

Credit: Freepik
Taiwan's defense ministry is preparing to request up to NT$1 trillion ($33 billion) in special funding over seven years to fortify the island's military against escalating threats from China, according to a senior lawmaker from President Lai Ching-te's ruling party.
The proposed budget, ranging from NT$800 billion to NT$1 trillion, aims to create a "complete defense ecology" by integrating air defense systems, acquiring advanced sensors for detecting stealth drones, rockets, and missiles, and expanding domestic ammunition production and storage for sustained wartime operations.
Wang Ting-yu, a member of the Democratic Progressive Party (DPP) and the parliamentary Foreign Affairs and National Defence Committee, shared these details in an AFP interview, emphasizing the need for rapid response capabilities against China's advancing fifth-generation fighters and stealth technologies. "If you cannot detect it, all kinds of fire units are useless," Wang said.
The funding push comes as Beijing intensifies military activities around Taiwan, which it claims as its territory and has vowed to annex by force if necessary. China's air force conducts near-daily incursions into Taiwan's air defense identification zone, and recent war games have heightened invasion fears.
Taiwan's current defenses, while bolstered by U.S. arms, would struggle against China's superior firepower in a full conflict. Washington, Taiwan's primary arms provider, has urged the island to increase spending beyond its current levels—about 2.5% of GDP—to better deter aggression.
The special budget negotiations include potential U.S. arms deals, such as fighter jets and missile systems, which could influence the final amount. Wang confirmed the plans tie into broader trade talks to ease President Donald Trump's 20% tariff on Taiwanese exports, noting, "We want to show we're serious about self-defense."
Last month, Taiwan announced a 2026 defense budget of NT$949.5 billion ($31 billion), or 3.32% of GDP—a 20% hike from 2025 and surpassing the 3% NATO benchmark—encompassing veteran affairs and coast guard costs. The government aims to reach 5% of GDP by 2030, with special allocations like NT$186.8 billion for aircraft purchases and naval upgrades.
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