China has reportedly invested a significant amount of resources into military exercises in the Western Pacific, allocating approximately $15 billion, or 7% of its defense budget, in 2023. This information, based on an unpublished Taiwanese estimate, underscores Beijing’s escalating military presence in the vicinity of Taiwan and surrounding regions.
The internal study conducted by Taiwan’s armed forces offers a rare insight into China’s defense spending. Amidst escalating regional tensions, China has been bolstering its military strength, raising concerns among neighboring countries. China, claiming Taiwan as part of its territory, has not ruled out using force to assert its claim over the democratically governed island. Additionally, China is involved in territorial disputes over vast portions of the South China Sea and East China Sea.
A senior Taiwanese official, briefed on the research, stated that the study reveals the rationale behind China’s resource allocation. They are investing heavily to gain control over areas west of the First Island Chain, a series of archipelagos stretching from Indonesia to Japan, encompassing the South China Sea and East China Sea.
Taiwan’s defense ministry, while declining to comment on the specific figures, expressed concern over the Chinese Communist Party’s substantial military investment, which they perceive as a threat to regional peace and global prosperity. The study was undertaken to assist Taiwanese policymakers in understanding China’s military resource distribution across various regions and assessing the perceived ‘gap’ between Beijing’s intentions and actual capabilities. The $15.3 billion figure is roughly 85% of Taiwan’s 2023 defense budget and approximately 7% of China’s reported military spending for the same year.
This development follows US National Security Advisor Jake Sullivan’s historic visit to China in late August. Strategic discussions on Taiwan and tariffs were on the agenda, marking a significant step in implementing agreements reached between the Chinese and US presidents at their San Francisco meeting. Earlier in July, China had suspended talks with the US on arms control and nuclear proliferation in protest against US arms sales to Taiwan, which China strongly opposes. The US, a key ally and arms supplier to Taiwan, recently approved a $500 million military financing package for Taiwan, along with $2 billion in loans and loan guarantees.
The substantial investment in military exercises in the Western Pacific signals a significant escalation in China’s military ambitions and raises concerns about regional stability. The ongoing tensions between China and Taiwan, coupled with China’s assertive actions in the South China Sea and East China Sea, continue to be a source of geopolitical uncertainty in the region.