China spent $15.3b on Pacific exercises in 2023, internal Taiwan estimates show

According to a previously undisclosed Taiwanese estimate, China invested over $15 billion, or 7% of its defense budget, in Western Pacific exercises in 2023. This indicates Beijing’s commitment to military operations surrounding Taiwan and its neighbors.

As Beijing has increased its military footprint in response to growing tensions in the region, the internal study conducted by Taiwan’s armed forces and examined by Reuters provides a unique window into a portion of China’s defense budget.

Taiwan strongly objects to China’s claims over Taiwan, but China has never given up using force to subjugate the democratically ruled island. Additionally, it is embroiled in conflicts with multiple nations regarding the sovereignty of sizable portions of the East and South China Seas.

“This reveals the logic of allocation of their resources,” said a senior Taiwan official briefed on the research. “They are spending a huge amount of resources trying to gain control of the west of the First Island Chain.” The official, and two other people briefed on the research, declined to be identified for this story because of the sensitivity of the matter.

The First Island Chain is a collection of archipelagos running roughly from Indonesia in an arc northeast to Japan, encompassing the South China Sea and East China Sea.

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