Taiwanese President William Lai Ching-te announced that the island’s defense budget would now exceed 3% of its gross domestic product, marking a new stage in the modernization of its armed forces amid escalating tensions with China, as reported by AP News. This statement, made on Thursday during a speech to the American Chamber of Commerce, reflects his administration’s intent to strengthen national security while responding to both domestic and international concerns over the adequacy of Taiwan’s defense spending. As Beijing intensifies its military presence in the Taiwan Strait, the budget increase aligns with a broader strategy aimed at deterring a potential military confrontation.
Taiwan’s military is undergoing a rapid modernization process, combining the acquisition of advanced weaponry, the reinforcement of strategic infrastructure, and a restructuring of its forces. The island is investing in long-range anti-ship cruise missiles such as the Hsiung Feng III and the Sky Bow III ballistic missile defense system designed to intercept aerial and ballistic threats. These capabilities are further enhanced by the purchase of 66 upgraded F-16V fighter jets from the United States, equipped with AESA radar and advanced avionics, enabling them to match China’s fifth-generation aircraft. In the naval domain, Taiwan is developing an indigenous submarine fleet (IDS) to conduct maritime interdiction operations against potential amphibious forces, alongside the procurement of fast missile corvettes like the Tuo Chiang-class, optimized for engaging enemy vessels while maintaining a low radar signature. Additionally, Taiwan has expanded its use of reconnaissance and combat drones, including the Teng Yun, which provides long-range surveillance and strike capabilities in the Taiwan Strait.
Beyond acquisitions, Taiwan is strengthening its military infrastructure to enhance its resilience against potential strikes. The government is expanding its network of underground bunkers to protect air bases, command centers, and government facilities. Air defense modernization continues with the integration of Patriot PAC-3 missile batteries, capable of intercepting ballistic threats, and the development of an integrated missile defense shield using advanced radar systems and electronic warfare capabilities. Cyber defense has also become a key focus, with Taiwan countering an increase in cyberattacks attributed to China. Significant investments are being made in jamming and electronic warfare systems to mitigate digital threats targeting critical infrastructure and military networks.