Amid growing tensions with Beijing, Taiwan wants to increase defense spending by 13,9% in 2023

- Advertising -

just a year ago, the Taipei authorities announced an increase in the defense budget of the autonomous island since 1949, to bring the 16,8 budget to $418 billion, Taiwan's $2022 billion, an increase of 5,2% compared to 2021, in order to respond to the rise in threat posed by the rapid strengthening of the armed forces of the People's Republic of China. In doing so, Taiwan intended to exceed the current threshold of its defense effort set at 2% of its GDP, to gradually increase it towards 3%. The war in Ukraine, but also the significant increase in tensions with Beijing in recent months, and the demonstrations of force of the PLA following the visit of the President of the US House of Representatives to the island a few weeks ago, have apparently convinced the Taiwanese authorities to accelerate the pace of this growth, since they announced today that they intended increase this defense effort to $586,3 billion Taiwan, or €19,4 billion US, an increase of T$108.bn and 13,9% in relative value.

For Taiwan, it is above all a matter of increasing modernization and strengthening its defensive capabilities. Thus, this new budget will be used in part to finance the acquisition of new combat aircraft tasked with keeping Chinese fighters, bombers and drones at bay more and more numerous to be deployed in front of and around the island, including beyond the separation line in the Taiwan pass hitherto considered as the dividing line between the two countries. Interestingly, this increase is however lower than the overall increase in the state budget, which will reach more than 20% in 2023. Indeed, the Taiwanese Defense budget only represents the 4th state budget item for 14,6% of it, placing itself after the budgets devoted to social benefits, education and support for the economy.

Brave eagle taiwan Military alliances | Defense Analysis | Fighter jets
After the F-CK-1 twin-engine fighter derived from the F-16, the Taiwanese aeronautical industry designed the Brave Eagle, a training and attack aircraft intended to train F-16V pilots, and began development of a 5th generation fighter

It must be said that Taiwan has, unlike European democracies, a favorable economic and budgetary context, with annual growth of more than 4%, and a debt of less than 25% of its GDP. In addition, the country can rely on several economic strengths that can be exploited on a global scale, particularly in the field of semiconductor production. Thus, the Taiwanese giant TSMC alone today controls almost 25% of the world's semiconductors, 49% of the global production market, and even 92% of computer chips, far ahead of its main competitor, Samsung, which only reaches 12% market share. The company alone contributes 6% of the island's GDP, and its market valuation of $540 billion represents almost 65% of this same GDP. Western dependence on TSMC semiconductors constitutes both an additional reason for Beijing to reintegrate the island into the People's Republic of China, and the best guarantee from Taipei concerning Western involvement in its defense. Indeed, losing this industrial capacity could represent, for the West, an economic catastrophe much greater than that which could constitute the annexation of Kuwait by Saddam Hussein's Iraq on the hydrocarbon market, and which nevertheless mobilized the greatest military coalition of modern history.

- Advertising -

LOGO meta defense 70 Military alliances | Defense Analysis | Fighter aircraft

75% of this article remains to read,
Subscribe to access it!

The Classic subscriptions provide access to
articles in their full version, and without advertising,
from 6,90 €.


Newsletter subscription

- Advertising -

Register for the Meta-Defense Newsletter to receive the
latest fashion articles daily or weekly

- Advertising -

For further

2 Comments

Comments are closed.

SOCIAL MEDIA

Last articles