Taiwan plans to increase defense budget over 3%

Taiwan's President William Lai Ching-te announced on Thursday that the country's defense budget will surpass 3% of its economic output. This increase comes amid growing tensions with China. The Taiwanese military aims to improve its readiness by retaining more service members with better salaries. It also plans to extend compulsory national service from four months to one year. Lai spoke during an event hosted by the American Chamber of Commerce, emphasizing the need for stronger defense reforms. Currently, Taiwan’s military spending is about 2.45% of its GDP. U.S. President Donald Trump has urged Taiwan to increase its defense budget significantly, suggesting a target of up to 10%. This figure is much higher than what the U.S. or its close allies typically spend on defense. China, which views Taiwan as part of its territory, has substantially intensified its military activities. This has raised concerns in the region, prompting leaders in Australia and New Zealand to call for better communication from China about its military exercises. Lai affirmed Taiwan's commitment to cooperate with the U.S. and other democratic nations to maintain stability in the region. Although Taiwan and the U.S. do not have formal diplomatic relations, U.S. law mandates a response to potential threats against the island.