Taiwan Aims 7.5 Percent Boost in 2024 Defense Budget Amid China Tensions

An army personnel gestures during Taiwan's Southern armoured brigade live-fire exercises in Pingtung county, southern Taiwan, on Sept. 6, 2022. (Sam Yeh/AFP via Getty Images)

Taiwan’s Cabinet has proposed NT$440 billion ($14 billion) in defense spending for the 2024 fiscal year, a 7.5 percent increase from the previous year, amid rising military tensions with China, according to local reports.

The total defense budget may reach NT$534 billion ($16.98 billion) if the proposed additional budget of NT$49 billion ($1.6 billion) for enhancing military capabilities and NT$45 billion ($1.43 billion) for purchasing advanced fighter jets are approved, Taiwan News reported July 30.

The policy stipulates that annual defense spending should not fall below the average economic growth rate over the past three years. However, the Cabinet said the tense situation in the Taiwan Strait highlighted the need for Taiwan to enhance its military capabilities.

The proposed budget will be presented to Taiwanese President Tsai Ing-wen next month before it can be delivered to Legislative Yuan on Aug. 24 for approval, according to local outlet Liberty Times Net.

This came after the United States announced on July 28 that it would provide Taiwan with a $345 million military aid package consisting of weaponry derived directly from the U.S. Army’s stockpiles.

Taiwan’s Defense Ministry welcomed the move and said the U.S. decision to draw weapons from its own stockpiles for Taiwan’s use provided “an important tool” to support its self-defense.

Four upgraded U.S.-made F-16 V fighters fly during a demonstration at a ceremony at the Chiayi Air Force in southern Taiwan on Nov. 18, 2021. (Sam Yeh/AFP via Getty Images)

Taiwan’s Cabinet has previously proposed $19 billion in defense spending for 2023.

The Defense Ministry stated in a March report that Taiwan’s defense spending for this year would focus on preparing weapons to counter a potential “total blockade” by China. This includes replenishing artillery and rocket stocks and acquiring parts for F-16 fighters.

On June 29, the U.S. Defense Security Cooperation Agency (DSCA) approved two potential arms sales to Taiwan, valued at up to $440 million, marking the 10th agreement approved under the Biden administration.

The first arms deal included 30 mm high explosive incendiary-tracer rounds, 30 mm multi-purpose rounds, 30 mm training rounds, and other related equipment, which totaled an estimated $332.2 million. The move drew strong condemnation from communist China.

China Says US Military Aid Will Not Stop Unification With Taiwan

China’s Taiwan Affairs Office spokesman Chen Bihua said the Chinese Communist Party (CCP) is determined to unify Taiwan with mainland China, regardless of the amount of weapons provided by the United States.

Air force soldiers prepare to load U.S. made Harpoon AGM-84 anti ship missiles in front of an F-16V fighter jet during a drill at Hualien Air Force base on Aug. 17, 2022. (Sam Yeh/AFP via Getty Images)

“No matter how much of the ordinary people’s taxpayer money the… Taiwanese separatist forces spend, no matter how many U.S. weapons, it will not shake our resolve to solve the Taiwan problem or shake our firm will to realize the reunification of our motherland,” he said.

The spokesman accused the United States of turning Taiwan into a “powder keg” and “ammunition depot” and “aggravating the threat of war” in the Taiwan Strait by supplying arms to the self-ruling island.

The CCP views Taiwan as a renegade province that must be united with the mainland and refuses to rule out the use of force to achieve this goal even though Taiwan has never been ruled by the CCP and has its own democratic government.

The United States diplomatically recognizes but does not endorse China’s claims and maintains legal ties with Taiwan, ensuring that it will provide the arms necessary for the island’s defense.

Chinese leader Xi Jinping told President Joe Biden last year that, “Cross-Strait peace and stability and ‘Taiwan independence’ are as irreconcilable as water and fire.”

On July 30, Taiwan’s military detected 13 Chinese military aircraft and six naval vessels around Taiwan. Six aircraft crossed the median line of the Taiwan Strait, prompting Taiwan to dispatch aircraft, vessels, and land-based missile systems to monitor the situation.

Andrew Thornebrooke and Reuters contributed to this report.