Taiwan to boost defence budget 18% to record levels amid China tensions

Taiwan is planning to increase its defence expenditure by 18 per cent in 2027, reaching an all-time high as the island nation grapples with mounting security concerns. The significant budget allocation reflects Taipei's commitment to modernising its armed forces and bolstering deterrence capabilities against potential threats from across the Taiwan Strait.

The proposed spending increase comes as China has substantially ramped up military operations near Taiwan, conducting regular air and naval exercises in the surrounding waters. Beijing has also intensified its political pressure campaign, seeking to isolate the self-governed democracy on the international stage and undermine its standing among regional partners.

Taiwan's defence establishment has consistently emphasised the need for sustained investment in military capabilities to maintain a credible deterrent posture. The 2027 budget proposal represents a strategic response to China's expanding military capabilities and assertive regional behaviour, which defence planners assess as posing an evolving security challenge to the island.

The budget increase is expected to fund modernisation of Taiwan's air defence systems, naval vessels, and missile capabilities. Officials have stressed that adequate defence spending is essential to preserve the status quo and protect Taiwan's democratic way of life against coercive pressures from Beijing.