ongoing military and gray zone activity toward Taiwan. The PRC’s actions likely intended to establish a new status quo and to place greater operational demands on Taiwan’s military. Taiwan’s planned improvements only partially address its defense challenges, and a majority of Taiwan citizens believe that the then-Speaker’s visit and the PLA response were detrimental to Taiwan’s security.
Taiwan’s armed forces are authorized to fill approximately 215,000 billets, including 188,000 active-duty billets. As of 2021, the MND had accomplished its goal to fill 90 percent of the active duty billets (169,000) with volunteers. As Taiwan transitions to an all-volunteer force, the cost savings from manpower reductions provided some margin to improve individual pay and benefits, housing, and incentive pay. However, these savings have been insufficient to cover the full increase in manpower-related costs needed to attract and retain personnel under the new system. Taiwan also faces considerable equipment and readiness obstacles.
Reservists, conscripts, and civil defense volunteers support the volunteer active duty forces. Taiwan’s number of reserve personnel ranges from one to two million, while there are fewer than half a million conscripts. In 2021, Taiwan passed legislation to establish an organization to improve the mobilization of reserves and civilians to support military operations. In 2022, Taiwan implemented this legislation by establishing the All Out Defense Mobilization Agency, which coordinates a whole-of-society approach to support military operations and disaster prevention and response. In December 2022, Taiwan announced that it would extend the duration of mandatory military conscription service from four months to one year and double conscripts’ monthly salary starting in 2024.
Taiwan continues to increase its defense budget to support defense acquisitions and strengthen its forces against Chinese pressure. In 2020, the Tsai administration announced defense spending to be the highest level since 1990. In October 2022, Taiwan proposed total defense spending of about $19 billion for 2023, a 13.9 percent increase from 2022, which will represent about 2.4 percent of Taiwan’s GDP. In January 2022, Taiwan approved an $8 billion multi-year supplemental defense budget to strengthen Taiwan’s air and sea combat capabilities. Over half of Taiwan’s supplemental defense spending will fund missile corvettes and anti-ship weapons, such as the Hsiung Feng missile system. Meanwhile, China’s official defense budget continues to grow to around $230 billion in 2022, about 12 times larger than Taiwan’s defense budget, with much of China’s defense budget focused on developing the capability to unify Taiwan with the PRC by force.
Recognizing the growing disparity between their respective defense expenditures, Taiwan has stated that it is working to develop new cost effective concepts and capabilities for asymmetric warfare. Specific areas of emphasis in Taiwan’s strategy include offensive and defensive information and electronic warfare, high-speed stealth vessels, shore-based mobile missiles, rapid mining and minesweeping, unmanned aerial systems, and critical infrastructure protection. Taiwan has also dedicated significant defense spending toward its Harpoon Coastal Defense Systems, domestic submarine program, upgrading its existing F-16 fighters and producing the remaining three of a previously planned four transport docks.
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OFFICE OF THE SECRETARY OF DEFENSE
Annual Report to Congress: Military and Security Developments Involving the People's Republic of China
