Taiwan's government plans to increase its defense budget for 2026 to over 3% of GDP, the prime minister said, as the country is under pressure from the US to invest more in its own defense.

Over the past decade, Taipei has increased investment in military equipment and weapons in response to growing pressure from China, which claims the democratic island is part of its territory and has threatened to seize it by force.

Prime Minister Cho Jung-tai said the latest increase was "further concrete proof to the world and the people of Taiwan of our determination and ability to defend national sovereignty and security."

The proposed spending must be approved by the opposition-controlled parliament before it can take effect.

The Taiwanese government has allocated NT$949.5 billion (US$31.1 billion), or 3.23% of GDP, for defense spending next year, Cho said, according to AFP.

"Our total defense budget is calculated according to NATO models and standards, including the coast guard budget," he added.

Cho stressed that total spending for 2026 is budgeted at just over NT$3 trillion, NT$110 billion or about 3.8% more than in 2025.

President Lai Ching-te had earlier promised to increase defense spending to over 3% of GDP after Washington pressured the island and other governments around the world to spend more on their own security.

The announcement comes as Taipei seeks to reach an agreement with the administration of US President Donald Trump on lower tariffs on Taiwanese exports to the US.

Earlier this month, Trump imposed temporary tariffs of 20% on Taiwanese imports as part of his global trade war.

The two sides are still trying to reach an agreement.

The pro-China Kuomintang party, which controls the island's legislature with the help of the Taiwan People's Party, cut Lai's government budget for 2025.

He had planned to increase defense spending to a record 647 billion Taiwanese dollars, or about 2.5% of GDP. However, some items were cut or frozen.

The KMT defended the cuts, saying the party was seeking to stop wasteful spending.

Trump has already suggested that Taiwan pay the US for its defense and accused the island of stealing the American semiconductor industry.

Although Taiwan has its own defense industry and is modernizing its equipment, it would be at a disadvantage in a conflict with China and relies heavily on arms sales from the US to strengthen its defense capabilities. | BGNES