Taiwan eyes defense spending hike to counter China pressure DW 12/01/2025

"Taiwan's President Lai Ching-te last week outlined a plan to invest an additional $40 billion (around 34.4 billion) special defense budget for the next eight years to develop an advanced defense system to counter China. China, which views democratically-governed Taiwan as its own territory, has ramped up military and political pressure in recent years to assert its claims on the island. In turn, Lai has pledged to raise Taiwan's annual military spending to around 3.3% of gross domestic product (GDP) in 2026 the highest since 2009 and to reach 5% of GDP by 2030."

"Highlighting the urgency of the situation, Lai pointed to Beijing's goal of achieving "complete unification with Taiwan by force by 2027." The remark was later modified on official platforms and clarified by the Presidential Office as referring to Beijing's "preparations" rather than a confirmed timeline."

"Despite the confusion Lai's speech sparked in Taiwan, the United States has publicly welcomed the proposal. Washington is the island's main security backer and arms supplier, despite not having formal diplomatic ties with Taipei. Raymond Greene, the de facto US ambassador in Taipei, said that Washington supports Taiwan's "rapid acquisition of critical asymmetric capabilities." Beijing, in turn, condemned Taiwan's ruling party for "resisting reunification and seeking independence using armed forces" and warned this course was "doomed to fail." China is closely monitoring Taiwan's defense moves as Beijing ramps up military activities around the island [FILE: October 14, 2025]Image: CHINA'S PEOPLE'S LIBERATION ARMY/AFP"

Taiwan will add $40 billion in a special defense budget over the next eight years to develop advanced systems aimed at countering China. The government plans to raise annual military spending to about 3.3% of GDP in 2026 and to reach 5% by 2030. Taipei cited Beijing's preparations for possible forceful unification as an urgent security concern. Beijing condemned the initiative as doomed to fail and accused Taiwan's ruling party of seeking independence by force. The United States welcomed the proposal and pledged support for rapid acquisition of asymmetric capabilities. Regional military activity around Taiwan is increasing.

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