Taiwan's Defense Budget Hits Record High of 25 Trillion Next Year... Military Tensions Escalate

China Increases Defense Budget for 7 Consecutive Years
Despite Economic Slowdown Concerns... 2.5% of GDP

The Taiwanese government announced that it will increase its defense budget for the seventh consecutive year, raising it to 2.5% of the Gross Domestic Product (GDP). Despite concerns over a slowdown in this year's economic growth, the increase in defense spending is seen as a response to China's military provocations. Military tensions surrounding the Taiwan Strait, which is at the forefront of the US-China conflict, are also expected to intensify.

[Image source=AP Yonhap News]

On the 21st, according to Taiwan Central News Agency (CNA), the Executive Yuan of Taiwan reported to President Tsai Ing-wen that next year's defense budget has been finalized at 606.8 billion New Taiwan dollars (approximately 25.4734 trillion Korean won), a 4.5% increase from this year. This marks the first time Taiwan's defense budget will exceed 600 billion New Taiwan dollars. The budget corresponds to 2.5% of GDP.

The Taiwanese government previously announced plans to modernize its military by acquiring upgraded versions of the F-16 fighter jets, the F-16V, from the United States, as well as developing its own submarines and producing cruise missiles. President Tsai emphasized, "Taiwan must continue to strengthen its self-defense capabilities, demonstrate its resolve, ensure national security and interests, and simultaneously seek more international support."

Despite forecasts of a slowdown in Taiwan's economic growth, the defense budget is expected to continue increasing. According to major foreign media, Taiwan's economic growth rate this year is projected to be only 1.36%, the lowest in the past eight years. However, due to ongoing threats of military provocations from China, the government has decided to increase defense spending.

China continues to carry out military provocations around the Taiwan Strait. On the 20th, following the visit of Lai Ching-te, Taiwan's Vice President, to the United States, and the meeting of the leaders of South Korea, the United States, and Japan at Camp David where the Taiwan issue was mentioned, China expressed dissatisfaction and proceeded with large-scale military exercises in the Taiwan Strait.