Taiwan plans to increase its defense budget by 22.9% to over 3% of GDP in 2026, reflecting its commitment to countering China’s military threats. This budget will encompass new fighter jets and enhanced naval defenses, marking the first inclusion of coast guard expenses in total defense spending, a strategic move given China’s aggressive tactics. Taiwanese officials stress this increase demonstrates their determination to safeguard national sovereignty amid heightened pressures from Beijing, while also aligning with U.S. expectations for allied defense spending. As China continues its military modernization, Taiwan’s proactive stance is vital for maintaining stability in the Indo-Pacific region.