China announced its biggest rise in military spending in three years yesterday, a strong signal from Chinese President Xi Jinping (習近平) that Beijing is not about to back away from its growing assertiveness in Asia, especially in disputed waters.
The government said it would increase the defense budget by 12.2 percent this year to 808.23 billion yuan (US$131.57 billion), as China seeks to develop more high-tech weapons and beef up coastal and air defenses.
The increase follows a nearly unbroken run of double-digit hikes in the defense budget for the past two decades.
“This is worrying news for China’s neighbors, particularly for Japan,” said Rory Medcalf, a regional security analyst at the independent Lowy Institute in Sydney.
Those who thought Xi might prefer to concentrate on domestic development over military expansion in a slowing economy had “underestimated the Chinese determination to shape its strategic environment,” he added.
The increase in spending appears to reflect Xi’s desire to build what he calls a strong, rejuvenated China. The spending jump is the biggest since a 12.7 percent rise in 2011.
Within hours of the announcement, officials in Taiwan and Japan had expressed disquiet over the absence of any details on how Beijing will spend the money.
In Taipei, while noting the “substantial” spending increase was needed to modernize China’s military, Ministry of National Defense spokesman Major General David Lo (羅紹和) said much remained hidden.
“The transparency of China’s defense budget has always been questionable, as it is widely seen there are a massive amount of military items hidden,” he said.
Japanese Chief Cabinet Secretary Yoshihide Suga said China’s lack of clarity in its defense policy and spending was a global concern.
Speaking at the opening of the National People’s Congress yesterday, Chinese Premier Li Keqiang (李克強) said the government would “strengthen research on national defense and the development of new and high-technology weapons and equipment” and “enhance border, coastal and air defenses.”
He gave no details.
US President Donald Trump yesterday announced sweeping "reciprocal tariffs" on US trading partners, including a 32 percent tax on goods from Taiwan that is set to take effect on Wednesday. At a Rose Garden event, Trump declared a 10 percent baseline tax on imports from all countries, with the White House saying it would take effect on Saturday. Countries with larger trade surpluses with the US would face higher duties beginning on Wednesday, including Taiwan (32 percent), China (34 percent), Japan (24 percent), South Korea (25 percent), Vietnam (46 percent) and Thailand (36 percent). Canada and Mexico, the two largest US trading
ACTION PLAN: Taiwan would expand procurement from the US and encourage more companies to invest in the US to deepen bilateral cooperation, Lai said The government would not impose reciprocal tariffs in retaliation against US levies, President William Lai (賴清德) said yesterday, as he announced five strategies to address the issue, including pledging to increase Taiwanese companies’ investments in the US. Lai has in the past few days met with administrative and national security officials, as well as representatives from various industries, to explore countermeasures after US President Donald Trump on Wednesday last week announced a 32 percent duty on Taiwanese imports. In a video released yesterday evening, Lai said that Taiwan would not retaliate against the US with higher tariffs and Taiwanese companies’ commitments to
‘SPECIAL CHANNEL’: Taipei’s most important tasks are to stabilize industries affected by Trump’s trade tariffs and keep negotiations with Washington open, a source said National Security Council Secretary-General Joseph Wu (吳釗燮) arrived in the US for talks with US President Donald Trump’s administration, a source familiar with the matter said on Friday. Wu was leading a delegation for a meeting known as the “special channel,” the Financial Times reported earlier. It marked Trump’s first use of the channel since returning to the White House on Jan. 20. Citing a source familiar with the matter, the Financial Times reported that Minister of Foreign Affairs Lin Chia-lung (林佳龍) was also a part of the delegation. The visit came days after China concluded war games around Taiwan and amid Trump’s
CHIP EXCEPTION: An official said that an exception for Taiwanese semiconductors would have a limited effect, as most are packaged in third nations before being sold The Executive Yuan yesterday decried US President Donald Trump’s 32 percent tariff on Taiwanese goods announced hours earlier as “unfair,” saying it would lodge a representation with Washington. The Cabinet in a statement described the pledged US tariffs, expected to take effect on Wednesday next week, as “deeply unreasonable” and “highly regrettable.” Cabinet spokeswoman Michelle Lee (李慧芝) said that the government would “lodge a solemn representation” with the US Trade Representative and continue negotiating with Washington to “ensure the interests of our nation and industries.” Trump at a news conference in Washington on Wednesday announced a 10 percent baseline tariff on most goods