President Tsai Ing-wen’s cabinet signed off on an 8.3% increase in military spending for the year starting January to T$411.3 billion ($13.11 billion), its largest yearly gain since 2008, according to Directorate General of Budget, Accounting and Statistics.
China warned in July it was ready for war if there was any move toward Taiwan’s independence and denounced arms sales from the United States to Taiwan, which is among a growing number of flashpoints in the U.S.-China relationship including a trade war and U.S. sanctions.
"To react to the enemy’s threat and to ensure national security, the defense budget continues to grow stably," Taiwan’s defense ministry said in a statement.
The ministry said it will spend more to purchase advanced weapons from overseas and to build a fully volunteer force after decades of conscription.
If approved by lawmakers, which is likely given the ruling Democratic Progressive Party’s control of parliament, it will be the highest since records started in 2001, data from the statistics agency show.