Taiwan's leader says increasing defence spending to 'deter war'
Taiwanese President Lai Ching-te announced a record $34.5 billion defense budget for 2027 to deter potential Chinese military aggression. The move aims to strengthen Taiwan's defense capabilities while signaling commitment to security partners like the United States.
Why it matters
This significant increase in military spending highlights the escalating geopolitical tensions in the Taiwan Strait and the island's efforts to maintain its autonomy against Beijing.
Taiwan aims to "deter war" by increasing its defence spending, the democratic island's leader said on Saturday (October 10, 2026), as China uses military pressure to assert its territorial claims.
Taiwan's 23 million people live under the constant threat of an attack by China, which insists the island is part of its territory and has threatened to use force to annex it.
"Our aim by increasing investment in national defence is not to provoke, rather, it is to deter war," President Lai Ching-te said in a speech to celebrate Taiwan's National Day.
Successive administrations have ramped up military spending as Taiwan improves its fighting abilities to avoid a potential Chinese invasion — and to show the United States it is serious about its own defence.
Mr. Lai's government has earmarked a record NT$1.1 trillion ($34.5 billion) in defence spending for 2027, which accounts for more than 3% of GDP.
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