Taiwan To Raise Defense Spending To 5% Of GDP By 2030

Taiwanese President Lai Ching-te declared that military spending will climb to 5% of the island’s gross domestic product (GDP) by 2030, highlighting Taipei’s determination to boost national defense against the growing threat from China. Speaking during a visit to a naval vessel on Friday, Lai said the decision reflects Taiwan’s resolve to safeguard democracy, freedom, and human rights, while also working with the international community to maintain peace and stability across the Indo-Pacific.

Commitment To Self-Reliant Defense

President Lai emphasized that Taiwan’s defense strategy is not limited to foreign weapons procurement but also includes expanding indigenous research, design, and manufacturing capacities. He pledged to deepen cooperation with allied nations to enhance technology transfer and strengthen the domestic arms industry. Lai said such measures would “jointly exert deterrent power” in coordination with international partners.

Budget Increases And Strategic Context

The announcement followed the government’s presentation of a 2026 military budget of NT$949.5 billion ($31.2 billion), marking a 23% increase from last year and accounting for 3.32% of GDP. This already surpasses Lai’s earlier targets for defense expenditure. Calls from Washington, particularly during the Trump administration, have pushed Taiwan to raise spending even higher, with some U.S. officials suggesting it should reach 10% of GDP to counter China’s military build-up.

Rising Regional Pressures

The pledge comes as tensions in the Taiwan Strait remain high, with Beijing increasing military drills near the island. Lai’s government has sought to reassure both domestic and international audiences that Taiwan is preparing to resist coercion. The defense buildup is framed as part of wider efforts to ensure stability in the Indo-Pacific and strengthen alliances with democratic partners.