Taiwan raises defense spending to deter potential conflict with China

Taiwan will spend a record amount on defence in 2027 to stop war with China, President Lai Ching-te said during a National Day address in Taipei.

Lai outlined a $34.5bn military budget for next year, which exceeds 3 percent of the island's gross domestic product. He said the spending shift responds to ongoing pressure from Beijing, which has maintained military and grey-zone operations across the Taiwan Strait.

“We are open to exchanges, but will not accept subordination,” Lai told thousands of attendees on Saturday. “Our aim by increasing investment in national defence is not to provoke; rather, it is to deter war.”

Taiwan's defence ministry reported that 21 Chinese military aircraft and seven navy ships operated near the island in a 24-hour window ending at 6 a.m. Saturday. Thirteen aircraft crossed the median line into Taiwan's air defense identification zone, part of a pattern Beijing uses to test defenses without starting open conflict.

The announcement comes as Taiwan waits for US approval on a $14bn weapons package that includes Patriot air defence systems. Washington has maintained its security commitment despite President Donald Trump's past suggestion that arms sales could serve as leverage in negotiations with Beijing. Officials in both capitals have stated that US policy remains unchanged.

Lai called on Indo-Pacific democracies to cooperate on regional stability and welcomed direct talks between the United States and China, provided they acknowledge Taiwan's right to exist. The address marked the 115th anniversary of the 1911 uprising that established the Republic of China, which remains Taiwan's official name today. The territorial dispute traces back to the 1949 Chinese civil war when nationalist forces retreated to the island.