Taiwan seeks record $35 billion defense budget for 2027 amid rising Chinese pressure

Taiwan's administration submitted a request for a 1.12 trillion-NTD (approximately $35 billion) defence budget for the 2027 fiscal year, marking an 18% rise over the previous proposal and pushing spending to over 3% of the island’s estimated GDP. The measure reflects mounting Chinese military activity, including frequent incursions by aircraft, coast-guard vessels and large-scale exercises, as well as Beijing’s refusal to rule out force.

President Lai Ching-te, who has vowed to reach a 5% GDP defence share by 2030, described the budget as a peace-preserving investment. The plan now heads to a legislature dominated by the opposition, which only recently cleared the 2026 budget after a 266-day stalemate. Earlier this month, Taiwan amplified its annual Han Kuang drills, integrating reservists and civilians and briefly throttling mobile internet to text-only mode. The United States, while lacking formal diplomatic ties, has urged Taiwan to boost its defence spending under existing security legislation.