Taiwan Proposes Record $31.4 Billion 2027 Defense Budget Amid Chinese Pressure
On August 17, 2026, Taiwan President Lai Ching-te announced a record NT$1.1225 trillion ($31.4 billion) defense budget for 2027, a 16% increase from 2026 and the first to exceed 3% of GDP. The budget prioritizes asymmetric warfare capabilities, including air/missile defense, HIMARS, Abrams tanks, drones, and munitions stockpiles, aiming to deter Chinese military pressure. Taiwan plans to raise defense spending to 5% of GDP by 2030, amid ongoing Chinese incursions and exercises around the Taiwan Strait.