Taiwan plans to allocate a record NT$1.1 trillion (US$34.5 billion) to defence in 2027, an amount exceeding 3% of GDP. President Lai Ching-te announced the spending plan in a National Day address, saying the goal was “not to provoke, but to deter war.” He said China’s military and grey-zone activities were changing the status quo across the Taiwan Strait. Lai welcomed US-China dialogue but insisted Beijing must respect Taiwanese people’s right to exist. Taiwan is also awaiting US approval of a $14 billion arms package.
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