Taiwan Boosts Defense Budget Amid Rising Tensions

Intermediate | September 2, 2025

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Taiwan Boosts Defense Budget with a Major Increase

Taipei has proposed a significant increase in its military budget for 2026—raising defense spending to T$949.5 billion, equivalent to 3.32% of its GDP. That’s a roughly 23% increase over the current year, marking its share of national income allocated to defense for the first time since 2009. This move signals Taiwan’s determination to protect its sovereignty and contribute to regional stability. The fact that Taiwan boosts defense budget to this level highlights its commitment to security. (asahi.com, reuters.com)

Why Now? Taiwan Boosts Defense Budget in Response to Pressure from China

China’s increasingly aggressive military posture, including war drills and air patrols near Taiwan, has heightened concern in Taipei. Raising defense spending is both a response to these threats and a signal to Washington and regional partners—that Taiwan is investing in its own security. This is another reason why Taiwan boosts defense budget at this critical moment. (reuters.com)

Facts That Matter

The planned budget includes funding for new fighter jets, naval defenses, and for the coast guard and veteran services, which are now considered part of Taiwan’s overall defense plan. (reuters.com)
President Lai Ching‑te has stated his goal is to boost defense spending to 5% of GDP by 2030, underscoring long-term strategic planning. (reuters.com)

Why It Matters for You

Share insights into how governments use national budgets to respond to threats and maintain stability.
Gain rich Business English vocabulary—terms like GDP, defense spending, veterans services, and strategic signal come alive in real-world context.
Spark engaging conversations in class about international relations, defense policy, and government priorities.

Vocabulary

Defense spending (noun) – money a nation invests in its military.
- Example: Taiwan’s defense spending is rising to 3.32% of GDP.
GDP (Gross Domestic Product) (noun) – the total value of goods and services produced.
- Example: Taiwan’s defense spending now exceeds 3% of GDP.
Coast guard (noun) – a maritime defense and rescue service.
- Example: Taiwan included coast guard costs in its total defense budget.
Veteran (noun) – a former member of the armed forces.
- Example: The budget also covers benefits for veterans.
Sovereignty (noun) – a country’s right to govern itself.
- Example: Taiwan’s new budget strengthens its sovereignty.
Strategic signal (noun) – a message sent through decisions to influence perception.
- Example: Taiwan’s spending increase sends a strategic signal to allies.
Jet (noun) – a fast military aircraft.
- Example: Taiwan is planning to purchase new fighter jets.
Budget (noun) – a government’s financial plan.
- Example: The defense budget for 2026 reached a new high.
Increase (verb) – to raise or grow.
- Example: The government plans to increase defense spending next year.
Tension (noun) – stress or pressure between groups or nations.
- Example: Rising tensions with China prompted the budget increase.

Discussion Questions (About the Article)

How much is Taiwan planning to spend on defense in 2026?
What percentage of GDP will this spending represent?
Why did Taiwan decide to include coast guard and veterans in its budget?
What long-term goal did President Lai set for defense spending?
How does a higher defense budget serve as a strategic signal?

Discussion Questions (About the Topic)

Should countries increase military spending when facing nearby threats? Why or why not?
What does a nation’s defense budget tell us about its priorities?
How can countries balance national security with other budget needs like education?
How might changing military budgets affect peace and stability in a region?
What are some non-military ways to increase a nation’s security and sovereignty?

Related Phrase or Idiom

Phrase: “Send a message” – to act in a way that makes intentions clear to others.
Example: Taiwan’s jump in defense spending is clearly meant to send a message—to China and allies—that it takes security seriously.

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This article was inspired by Reuters reports. (en.wikipedia.org, ft.com, reuters.com, x.com)