Based on its tracking of ships and aircraft and calculating the cost of fuel and other expenses, the Taiwan government believes that China spent $21 billion on military exercises in the Western Pacific, the East and South China Sea, and the Taiwan Strait last year, which is over 40% more than 2023.
Taiwan’s armed forces’ internal research, which Reuters reviewed and four Taiwanese officials confirmed, provides a unique look at where China’s defense budget is likely going as Beijing increases the size of its military presence and the scope of its exercises, alarming Washington and other regional capitals.
Although 1.67 trillion yuan ($233.47 billion) was China’s defense expenditure for the previous year, most diplomats think the figure is underreported. China does not provide a breakdown of the expenditures.
Requests for response were not answered by China’s Taiwan Affairs Office or defense ministry. China, which considers Taiwan to be its own territory despite the government of Taipei’s protests, has stated time and again that its military expenditures are open and harmless.
Although they warned that the report’s technique inevitably involved some guessing, experts acknowledged it was doable and may yield useful information.
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