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Taiwan’s government has made military modernization a key policy platform and has repeatedly pledged to spend more on defense, including developing Taiwanese-made submarines, in light of growing threats from China.
China’s air force flies missions near Taiwan almost every day and held military exercises around the island in May, shortly after President Lai Ching-te, whom Beijing calls a “separatist,” took office. Lai has rejected China’s sovereignty claims, saying only the Taiwanese people can decide their own future.
The budget still needs to be approved by parliament, where the ruling Democratic Progressive Party lost its majority in January elections.
Taiwan’s main opposition Kuomintang has repeatedly expressed support for strengthening Taiwan’s defenses, but the Kuomintang and the Democratic Progressive Party are currently deadlocked over reforms to give parliament greater oversight powers, which the government says violates the constitution.
China is also rapidly modernizing its armed forces, with new aircraft carriers, stealth fighters and missiles.
China announced in March that it would increase its defense spending this year by 7.2 percent to 1.67 trillion yuan ($234.1 billion), up from Economic growth target of around 5% But analysts believe this figure is only around 1.3% of GDP.
Successive U.S. administrations have urged Taiwan to modernize its military and increase spending. The United States is Taiwan’s most important Weapons Supplier Despite having no diplomatic relations with China, it still has international supporters.
Nikki Haley, the Trump administration’s ambassador to the United Nations, praised Taiwan’s commitment to increasing defense spending in a speech at a security forum in Taipei on Wednesday.
“Other free nations should learn from them, especially America’s many allies,” she said.
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