Stock Groups

Taiwan plans $9 billion boost in arms spending, warns of ‘severe threat’ By Reuters


© Reuters. FILEPHOTO: A drill to counter invasion on the Tainan beach, Taiwan’s Han Kuang military drill, September 14-2021. REUTERS/Ann Wang

By Ben Blanchard and Yimou Lee

TAIPEI (Reuters) -Taiwan proposed spending an extra T$240 billion ($8.69 billion) on defence over the next five years on Thursday, including on new missiles, warning of the urgent need to upgrade weapons in the face of a “severe threat” from giant neighbour China.

TsaiIng-wen, Taiwan’s President has declared that modernizing the well-equipped but under-equipped armed forces and raising defence spending are top priorities. This is especially important as China intensifies its diplomatic and military pressure on the “sacred” Chinese island.

Tsai’s ruling Party has the majority in parliament, so this money must be approved.

After a weekly Cabinet meeting, Taiwan’s Defence Ministry released a statement saying that the Chinese Communists had continued to make large investments in their national defense budgets. Its military power has increased rapidly and has often dispatched planes to infiltrate and harass our airspace and seas.”

The nation’s military has been engaged in preparation and military building in the face severe enemy threats. Therefore, it is crucial to quickly acquire high-quality, mass-produced weaponry and equipment.

According to the ministry’s statement, Taiwan wants warships as well as cruise missiles.

Although Taiwan hasn’t given any details on the tests, experts, diplomats, and others have stated that these missiles are capable of striking targets well beyond China.

Washington will be pleased with the additional money. Washington has been encouraging Taiwan to modernize its military so that it is more mobile and can make China’s attack difficult.

Taiwan already has a class of new stealth warships that are highly mobile and agile, and it is also developing its own submarines.

Taiwan is currently in its Han Kuang military drills that simulate an attack by China. As they almost every day, Chinese planes again landed in Taiwan’s air defense zone Wednesday.

($1 = 27.6330 Taiwan dollars)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.