"China Crossing the Line"... Taiwan President Reiterates Call for Increased Defense Budget

President Lai Calls for Special Budget Allocation
Urges Defense Spending to Exceed 3% of Taiwan's GDP
"China Has Already Advanced to the Third Island Chain"

President Lai Chingte of Taiwan is delivering the keynote speech in Taipei on October 10, 2024, National Day (Double Ten Day). Photo by Reuters and Yonhap News.

Amid rising tensions between China and Taiwan, the President of Taiwan has argued that the country's defense budget should exceed 3% of its gross domestic product (GDP), calling for an increase through the allocation of a special budget.

According to Taiwanese media outlets such as Liberty Times and United Daily News on July 2, President Lai Chingte stated at a Taiwan Lions Club event the previous day, "I have pledged to raise this year's defense budget to at least 3% of GDP. This sends a message to the international community that Taiwan is determined and capable of defending itself."

President Lai, a member of the pro-U.S. Democratic Progressive Party, emphasized that China's defense budget has increased by more than 7% year-on-year for four consecutive years since 2022. He pointed out that this year, China's defense spending will exceed 8 trillion Taiwan dollars (approximately 373 trillion won), which is more than seven times higher than it was 20 years ago.

He also explained that during the administration of former President Ma Yingjeou of the pro-China Kuomintang, Taiwan's defense spending fell to the 2% range of GDP. However, since President Tsai Ingwen of the Democratic Progressive Party took office in 2016, the defense budget increased from 359.6 billion Taiwan dollars (about 16 trillion won) in 2016 to 606.8 billion Taiwan dollars (about 28 trillion won) last year, reaching the 2.5% range of GDP.

The reason Taiwan needs to strengthen its defense capabilities is that China is expanding its operational range beyond coastal defense to the central Pacific. President Lai stated, "China's threat is not directed solely at Taiwan," and argued, "China has already advanced beyond the first and second island chains to the third island chain."

The first island chain connects the Japanese archipelago, Okinawa, Taiwan, and the Philippines. The second island chain links Iwo Jima in Japan, Guam, Saipan, Palau, and Australia. The third island chain, which is much farther east, stretches from Hawaii to American Samoa and New Zealand.

President Lai predicted, "China seeks to reshape the international order and establish a dominant position in the Western Pacific," adding, "Even if China annexes Taiwan, these efforts will not cease."

Meanwhile, Taiwanese media reported that the annual joint military exercise of the Taiwanese military, 'Han Kuang 41,' which will be held for ten days starting July 9, will for the first time include training to counter China's gray zone tactics. Gray zone tactics refer to low-intensity provocations that do not escalate into actual armed conflict or war.