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Taiwan Increases Defense Budget Focusing on Technological and Asymmetric Warfare to Counter China.
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 is developing indigenous submarines to counter amphibious forces and acquiring stealthy Tuo Chiang-class missile corvettes for naval defense (Picture source: Taiwanese MoD)
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.
On the personnel front, the Lai administration has introduced structural reforms to improve military efficiency. One of the most notable changes is the extension of compulsory military service from four months to one year, aimed at bolstering the readiness and operational capacity of Taiwan’s reserve forces. This initiative is complemented by increased salaries and benefits for military personnel to improve retention rates and overall professionalization. Additionally, Taiwan is intensifying its defense cooperation with the United States and other strategic partners, increasing the frequency of joint exercises and specialized training, particularly in asymmetric warfare and coastal defense operations.
U.S. pressure on Taiwan to increase defense spending has intensified in recent years, particularly under the administration of Donald Trump. The former president advocated for Taiwan to allocate up to 10% of its GDP to military expenditures—far exceeding the levels of most Western allies—to strengthen its deterrence against China. This push reflects the ongoing expansion of China’s military capabilities, including aircraft carriers, hypersonic missiles, and stealth aircraft, which have heightened concerns about a potential invasion. In response, Taiwan has adapted its military doctrine, shifting toward a more mobile and flexible defense strategy, emphasizing preemptive strike capabilities and force dispersion to minimize vulnerability in the event of an attack.
Regional dynamics also play a significant role in Taiwan’s military buildup. China’s recent actions in the South China Sea and the broader Indo-Pacific have raised concerns among neighboring countries. Australia and New Zealand, for example, voiced their objections after the Chinese navy conducted live-fire exercises in the region without prior warning, disrupting commercial flight routes. In this increasingly tense security environment, Taiwan is seeking to reinforce its alliances by expanding cooperation with the United States, Japan, and other regional partners to maintain a strategic balance.
The increase in defense spending aligns with Taiwan’s broader long-term strategy to strengthen its military resilience while asserting its status as a self-governing entity. The Lai administration, affiliated with the Democratic Progressive Party (DPP), has maintained a firm stance on national security, prioritizing a credible deterrence strategy through technological advancements and increased collaboration with democratic partners. As China continues to escalate military and diplomatic pressure, Taiwan is adapting to an increasingly complex security landscape, relying on asymmetric defense strategies and an accelerated modernization of its forces to maintain its security in the face of evolving threats.