Fri Aug 22 15:47:32 UTC 2025: Okay, here’s a news article summarizing and rewriting the provided information, keeping in mind the “The Hindu” perspective:

**Taiwan Aims for NATO-Standard Defence Spending Amidst Rising China Tensions and US Trade Hurdles**

**Taipei, August 22, 2025:** Taiwan is significantly increasing its defense spending in response to escalating tensions with China, aiming for 5% of GDP by 2030, President Lai Ching-te announced on Friday. This move comes as the United States urges Taiwan to bolster its own security capabilities in the face of persistent threats from Beijing, which views the island as a breakaway province.

President Lai, speaking during a visit to the Navy’s 168th Fleet, emphasized the government’s commitment to meeting NATO standards for defense investment. The island nation, heavily reliant on US support, has been steadily increasing its military expenditure over the past decade.

The announcement follows closely on the heels of the government’s unveiling of its proposed 2026 defense budget, slated to reach 3.32% of GDP. This budget, amounting to NT$949.5 billion (US$31.1 billion), represents a 22.9% increase over the current year. However, it includes NT$135.9 billion allocated to the Coast Guard Administration and military retirement benefits, funds that were previously excluded from the defense budget. The opposition-controlled parliament must approve these allocations before they take effect.

The renewed focus on defence spending also coincides with ongoing trade negotiations with the United States. Taiwan is currently seeking to alleviate the impact of a temporary 20% tariff imposed by the Trump administration on Taiwanese imports. The tariff, part of a broader US trade war, poses a significant challenge to Taiwan’s economy.

The ramp-up in defense spending underscores Taiwan’s determination to safeguard its sovereignty and security in the face of growing geopolitical uncertainty. The government’s commitment to strengthening its military capabilities, coupled with its pursuit of strategic alliances and trade partnerships, reflects a multi-faceted approach to navigating the complex challenges posed by its powerful neighbor, China.

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