Taiwan President Lai Ching-te said on Friday that he hopes the country’s defense spending will reach 5% of gross domestic product before 2030, raising the island’s military budget target in line with calls from Washington.
On Thursday, the government announced that the 2026 defense budget will stand at 3.32% of GDP. For the first time, the allocation will include coast guard expenditures, a move Premier Cho Jung-tai described as following the “NATO model.”
The decision comes amid intensifying military and political pressure from China, which claims Taiwan as its own territory. Taipei rejects these claims and has increased its defense investments over the past decade.
Washington has also urged Taiwan to raise its defense budget, similar to the pressure placed on European allies to meet NATO spending benchmarks.
During a visit to a navy base in northeastern Taiwan, Lai said Chinese threats have grown in recent years, and that Taiwan should aim to reach the 5% level before 2030.
“This not only demonstrates our country’s determination to safeguard national security and protect democracy, freedom, and human rights,” Lai said in remarks released by his office.
“It also shows our willingness to stand shoulder to shoulder with the international community to jointly exert deterrent power and maintain peace and stability in the Indo-Pacific region.”
Lai also noted that the government would seek deeper cooperation with international partners in weapons research, development, and production, without providing specifics.
The United States remains Taiwan’s primary arms supplier despite the absence of formal diplomatic ties. Taiwan’s domestic defense industry, however, has also produced fighter jets, missiles, and other systems to strengthen its military capabilities.