Taiwan boosts defense budget amid rising tensions with China; Beijing expands military modernisation
- In Reports
- 08:40 PM, Aug 22, 2024
- Myind Staff
In a move to bolster its defense capabilities amidst increasing regional tensions, Taiwan has announced a 7.7 percent increase in its defense spending for the upcoming year. This budgetary boost, which exceeds projected economic growth, will fund the acquisition of additional fighter jets and missiles. The enhancement of Taiwan's military resources underscores its commitment to strengthening deterrence against escalating threats from Beijing, as highlighted by the cabinet's recent statement.
Over the past five years, China has intensified its military and political pressure on Taiwan, which it considers part of its territory despite Taiwan's democratic governance and strong rejection of these claims. This heightened aggression reflects China's ongoing efforts to assert its territorial claims over the island.
In its regular weekly meeting, Taiwan's cabinet announced that defense spending for 2025 will increase by 7.7 percent year-on-year, reaching T$647 billion ($20.25 billion). This expenditure will represent 2.45 percent of the country's gross domestic product, up from 2.38 percent this year. Notably, this increase in defense spending surpasses the government's projected economic growth rate of 3.26 percent for the year.
The defense budget for 2025 includes a special allocation of T$90.4 billion dedicated to acquiring new fighter jets and expanding missile production. This expenditure is part of a broader military spending plan announced in 2021, which outlines an additional T$240 billion in defense investments over a five-year period.
Hsieh Chi-hsien, head of the defense ministry's comptroller bureau, informed reporters that achieving a defense spending level of 3 percent of GDP is a targeted goal. He emphasised that, currently, Taiwan's defense spending is "growing steadily" towards this objective.
"We will not join in an arms race with other countries. We will increase (spending) steadily according to our needs," he said.
China's air force conducts near-daily missions in the airspace around Taiwan and conducted war games around the island in May, shortly after President Lai Ching-te assumed office. Beijing has labelled Lai a "separatist," a designation he rejects, asserting that only the people of Taiwan have the right to determine their future.
The proposed defense budget will still require parliamentary approval. The ruling Democratic Progressive Party (DPP) lost its majority in the January elections, which may impact the budget's passage.
Taiwan's main opposition party, the Kuomintang, has consistently endorsed strengthening the island's defenses. However, it is currently at an impasse with the ruling Democratic Progressive Party (DPP) over disputed reforms aimed at enhancing parliamentary oversight, which the government deems unconstitutional.
Meanwhile, China is accelerating the modernisation of its military, with advancements including new aircraft carriers, stealth fighter jets, and missiles.
In March, China announced a 7.2 percent increase in its defense spending for the year, bringing the total to 1.67 trillion yuan ($234.10 billion). This rise surpasses the country's economic growth target of approximately 5 percent for 2024. However, analysts note that this expenditure represents only about 1.3 percent of China's GDP.
Speaking at a security forum in Taipei on 21st August, Nikki Haley, a United Nations ambassador under the Trump administration, praised Taiwan's commitment to spending more on defence."Other free nations should learn from them, especially many U.S. allies," she said.
Image source: Bloomberg
Photo credits- Bloomberg
Comments