Taiwan Unveils Record Defense Budget As China Threat Grows

August 20, 2026 1:32 PM ET Taiwan is proposing a record defense budget for 2027 as the island pours more money into its military amid mounting pressure from China and calls from Washington for Taipei to shoulder more of its own defense burden.Taiwan’s government proposed spending 1.12 trillion Taiwan dollars, roughly $35 billion, on defense next year, pushing military spending above 3% of gross domestic product (GDP), according to the country’s Presidential Office. The spending plan would mark the first time Taiwan’s annual defense budget has exceeded 1 trillion Taiwan dollars and comes as Beijing continues sending military aircraft and vessels near the island while periodically conducting large-scale exercises in the region.China claims Taiwan as part of its territory and has not renounce