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Taiwan eyes jet fighter buy amid modest hike in 2022 defence spending

EconomyAug 26, 2021 01:16AM ET
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© Reuters. FILE PHOTO: Taiwan's President Tsai Ing-wen gives a speech after visiting the Navy's 131st Fleet in Keelung, Taiwan, March 8, 2021. REUTERS/Ann Wang

TAIPEI (Reuters) - Taiwan announced a more modest pace in defence spending for next year on Thursday, but will spend $1.44 billion on new fighter jets, as the island bolsters its forces in the face of increased pressure from Beijing.

China has stepped up its military activity near Taiwan, including holding assault drills last week near the island, which it regards as Chinese territory to be brought under Beijing's control, by force if necessary.

President Tsai Ing-wen's cabinet is proposing military spending of T$471.7 billion ($16.89 billion) for the year starting in January, up from this year's budget of T$453.4 billion, the government said in a statement.

That number includes T$40.1 billion ($1.44 billion) for new fighter jets, though the government did not give details but likely refers to F-16s.

The United States in 2019 approved an $8 billion sale of F-16 fighter jets to Taiwan, a deal that would bring the island's total to more than 200, the largest F-16 fleet in Asia.

The rate of increase would be smaller than the 10% rise budgeted for this year, according to Reuters calculations based on government data.

China in March said its 2021 defence spending would rise 6.8% from 2020, as the world's second-largest economy emerges from the repercussions of the coronavirus pandemic.

Taiwan's proposed defence budget is the third-largest government expenditure for next year, after social welfare and combined spending on education, science and culture.

The budget must be approved by parliament, where Tsai's Democratic Progressive (NYSE:PGR) Party has a large majority, making its approval easier.

Tsai has made modernising Taiwan's armed forces - well-armed, but dwarfed by China's - and increasing defence spending a priority.

Part of that is a making Taiwan a "porcupine" equipped with advanced, highly mobile weapons to make a Chinese invasion as difficult as possible.

($1=27.9310 Taiwan dollars)

Taiwan eyes jet fighter buy amid modest hike in 2022 defence spending
 

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Comments (3)
Mike Mike
Mike Mike Aug 26, 2021 3:42AM ET
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World conflict makes us rich. Our 3rd world pet dogs love our weapons.
Necleus Electron
Necleus Electron Aug 26, 2021 1:25AM ET
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This taiwanese woman president has her own agenda.
Necleus Electron
Necleus Electron Aug 26, 2021 1:23AM ET
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See that! This is how US create conflicts around the world to earn billions by american companies. How much taxpayers money have been wasted on these metals instead of going to the people.
 
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