TREE NEWS update: Taiwan’s Executive Yuan approved a 2027 defense budget plus special budget that together approach 4% of GDP, and Vice President Hsiao Bi-khim reiterated President Lai Ching-te’s pledge to raise defense spending to 5% of GDP. Asked about this at a regular press conference on September 16, China’s Taiwan Affairs Office said the move is “self-destructive.”
China’s Taiwan Affairs Office Slams Taiwan’s 2027 Defense Budget Near 4% of GDP
Beijing's "self-destructive" framing is less about the budget number than about who Taiwan is buying from and why — the closer defense spending tracks toward the 5% pledge, the more cross-strait rhetoric is likely to harden. The signal matters most for Taiwan's fiscal priorities and its defense-industrial ties, and for how Beijing calibrates its response. Whether the special budget survives legislative review, and whether the 5% target stays a pledge rather than a plan, is the open question.
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