The rapid modernisation of the People’s Liberation Army (PLA) of China, invasive drills and Taiwan’s aging equipment has forced the Taiwanese government to increase its defence expenditure besides enhancing its defence capabilities. Consequently, the total defence expenditure hit a robust compound annual growth rate (CAGR) of 12 percent to record US$16.9 billion in 2022 and will continue to grow at a CAGR of 3 percent to reach US$18.1 billion in 2027, says GlobalData, a data and analytics company


GlobalData’s report, Taiwan Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-2027’, reveals Taiwan’s focus on increasing investment in its acquisition and other operational budgets. China’s aim to include Taiwan within its territory has imposed a great threat to Taiwan’s national security and sovereignty. With the PLA frequently violating the median line by conducting military drills in the Taiwan strait, the level of threat continues to amplify. Hence, with the additional budget, the acquisition budget hit a robust CAGR of 40.8 percent to record US$2.3 billion in 2022.

Akash Pratim Debbarma, Aerospace & Defence Analyst at GlobalData, comments: “With Taiwan’s change in military doctrine, Taiwan aims to develop joint capabilities, with all-out defence, and make use of long-range and multi-domain deterrence measures to discourage the enemy’s aggression and ensure homeland security. Taiwan’s additional budget invested to procure 66 units of F-16 Vipers and series of weapons systems perfectly aligns with the new doctrine and strategy proving their intention to stand strong against any future aggression and construct a resolute defence. These aircraft and weapon systems procured from the US will not only enhance Taiwan’s defensive capabilities but will also prove to be a lethal weapon to strike on the aggressor’s mainland.”

The US, Taiwan’s most important ally, continues to support Taiwan in terms of defence consultation, developing joint capabilities, and providing the country with advanced arms and weapon systems to remain independent and defend itself from its northern neighbour. Recent deals with the US to procure Lockheed Martin M142 HIMARS, Boeing AGM-84H SLAM-ER missiles, and the upgrade of Patriot missile systems are some examples that show the US’ support in the modernisation of Taiwan’s armed forces to maintain a strong defensive capability.

Debbarma said “The current Russia-Ukraine scenario could probably ignite a spark within the PLA to follow Russia’s footsteps, albeit cautiously. Taiwan’s national security relies completely on its future capabilities and the extent to which the US will be involved in any future conflict between the two nations.”

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