In a National Day speech on Saturday, President Lai Ching-te said Taiwan’s government has allocated NT$1.1 trillion ($34.5 billion) for defense in 2027, equivalent to more than 3 percent of GDP. The announcement followed US President Donald Trump’s demands that Taiwan pay for American protection, with a $14 billion US arms package including Patriot systems still awaiting Trump’s approval.
Taiwan proposes record $34.5B defense budget to deter China
Taiwan's President Lai Ching-te announced a record NT$1.1 trillion ($34.5 billion) defense budget for 2027, over 3 percent of GDP, saying the aim is 'not to provoke, but to deter war' with China.
Why it matters: The budget, the largest in Taiwan's history, answers Trump's demands that Taipei pay for US protection while a $14 billion American arms package still awaits his approval.
Data as of DW reporting October 10, 2026 (article opened and read via live browser research session; Lai's National Day speech figures read directly); corroborated at headline level by Al Jazeera and Arab News.
Sources
- Taiwan to boost military spending to 'deter war' with China · DW · 2026-10-10
- Taiwan president says defence spending boost aims to 'deter war' · Al Jazeera · 2026-10-10