Taiwan to massively hike 2026 defense budget

Taiwan plans to boost defense spending by a fifth next year, surpassing 3% of gross domestic product (GDP), as it invests billions more in new equipment to better face down China and convince the United States it takes seriously calls to bolster its military.

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The move comes as China, which views democratically governed Taiwan as its own territory, has ramped up military and political pressure over the past five years to assert its claims, which Taipei strongly rejects.

But Taiwan also faces calls from Washington to spend more on its own defense, mirroring pressure from the United States on Europe. This month, President Lai Ching-te said he wanted to boost defence spending to more than 3% of GDP next year.

Taiwan Premier Cho Jung-tai told reporters that 2026 defense spending would reach T$949.5 billion ($31.27 billion). At 3.32% of GDP, the figure crosses a threshold of 3% for the first time since 2009, government figures showed.