Taiwan plans a 7.7% increase in defense spending for 2025 to $20.25 billion, enhancing military capabilities against China’s escalating threats, while China also boosts its defense budget.
Taiwan’s Cabinet announced a 7.7% increase in defense spending for 2025, totaling $20.25 billion and accounting for 2.45% of GDP. This move aims to enhance Taiwan’s military capabilities amid increasing threats from China, which asserts claims over the democratically governed island. The budget includes $2.8 billion for new fighter jets and missile production as part of broader military modernization efforts.
China’s military pressure has intensified, with frequent incursions into Taiwan’s airspace and recent war games around the island. Taiwan’s administration, led by President Lai Ching-te, is committed to defending its sovereignty, rejecting China’s claims and asserting that only Taiwan’s people can determine their future.
The defense budget still requires parliamentary approval, where the ruling Democratic Progressive Party (DPP) faces challenges after losing its majority. The opposition Kuomintang supports strengthening defenses but is currently entangled in disputes over proposed reforms for greater legislative oversight. Meanwhile, China continues its military modernization with substantial spending increases.
Source : Taiwan defense spending to outpace GDP growth as China threat rises