Taiwan Boosts Defense Spending to Record $34.5B to Deter War
Taiwan President William Lai Ching-te announced a record defense budget of 1.1 trillion New Taiwan dollars ($34.5 billion) for 2027, representing more than 3 percent of the island's gross domestic product, according to ABS-CBN News. Speaking during National Day celebrations outside the Presidential Office in Taipei, Lai emphasized that the substantial military investment is intended to deter armed conflict rather than provoke Beijing.
Taiwan's defense funding expansion concentrates capital investments into accelerated manufacturing of long-range missiles, unmanned drones, and indigenous defense industrial production.
Taiwan's Executive Yuan approved a 2027 defense allocation of NT$1.1225 trillion, representing about 3.01 percent of projected GDP, according to IndoNeo.
An Academia Sinica survey determined that 53.9 percent of Taiwanese respondents supported increasing the national defense budget to 3 percent of GDP.
The official commemorations marked the 115th anniversary of the 1911 uprising that toppled China's final imperial dynasty. Thousands of citizens and international delegates witnessed military flypasts featuring fighter jets and Chinook helicopters carrying national flags, amid ongoing regional tensions and heightened military activity in the Taiwan Strait.
Beijing Condemns Speech and Rejects Dialogue
China's Taiwan Affairs Office sharply condemned Lai's National Day address, asserting that the remarks distorted facts and revealed separatist motives. Beijing reiterated its position that Taiwan remains an inalienable part of China and stated that the island's future must be decided jointly by all Chinese people, including compatriots in Taiwan.
Beijing has consistently rebuffed offers of talks from Lai's administration, labeling the Taiwanese leader a separatist. According to Taiwan's Ministry of National Defence, military pressure from the mainland continued unabated, with 21 Chinese military aircraft and seven navy ships detected around the island in a 24-hour period, including 13 aircraft crossing the median line of the Taiwan Strait.
Successive Taiwanese administrations progressively ramped up military expenditures over the past decade to strengthen deterrence and demonstrate defensive resolve to the United States.
Strategic Backing and US Arms Packages
Addressing international relations, Lai welcomed ongoing diplomatic communication between the United States and China while insisting on respect for the right of Taiwan's population to exist. Washington remains Taipei's primary security partner despite switching formal diplomatic recognition to Beijing nearly five decades ago.
Eswatini remains Taiwan's sole formal diplomatic ally on the African continent, having maintained continuous bilateral diplomatic ties despite extensive diplomatic pressure from Beijing.
Taiwan is currently awaiting final approval from US President Donald Trump for a $14 billion weapons package, which includes the advanced Patriot air defense system. Previous discussions by US leadership regarding arms sales as a potential diplomatic bargaining chip had sparked widespread international concern over regional stability.
Legislative and International Reactions
Parliamentary speaker Han Kuo-yu, a senior opposition figure favoring closer cross-strait ties, underscored the critical importance of United States backing for Taiwan's security while acknowledging deep historical and cultural connections with the mainland. Foreign dignitaries attending the Taipei celebrations included Eswatini King Mswati III, Indiana Lieutenant Governor Micah Beckwith, and a visiting Japanese parliamentary delegation.