Global military expenditure surged to an estimated $2,887 billion in 2025, a real-terms increase of 2.9 per cent from the previous year, according to data from the Stockholm International Peace Research Institute (SIPRI). The world’s three largest spenders — the United States, China and Russia — together accounted for $1,480 billion, or 51 per cent of the total. This rise pushed the global military burden, the share of world GDP devoted to defence, from 2.4 per cent to 2.5 per cent, even as the average share of government spending on militaries dipped slightly to 6.9 per cent.

The distribution of spending reflected shifting geopolitical priorities. In the United States, the world’s largest military spender, outlays contracted in real terms. By contrast, European nations collectively boosted spending by 14 per cent, a surge widely linked to Russia’s ongoing war in Ukraine and broader continental rearmament. Asia and Oceania recorded an 8.1 per cent increase, underlining rising tensions across the Indo-Pacific. Analysts in London note that Europe’s dramatic rise marks a decisive break from the post–Cold War peace dividend era.

Amid this backdrop of accelerating defence investment, the US House of Representatives Appropriations Committee unveiled a draft defence bill for fiscal 2027 that includes $2 billion for Taiwan’s security. Up to $1 billion would be earmarked for the Taiwan Security Cooperation Initiative, designed to enhance the island’s self-defence capabilities through joint development of uncrewed systems, training and medical support, with funding authorised through September 2028. Viewed from Washington, the proposal signals a firm commitment to Taiwan’s deterrence posture despite Beijing’s repeated objections to such military ties. From Taipei’s perspective, the assistance is a tangible reinforcement of a decades-old, albeit unofficial, alliance.

The convergence of record global spending and targeted US support for Taiwan points to a fragmenting security landscape. While the $2 billion sum is a fraction of total US defence outlays, it carries outsized symbolic and strategic weight in the Taiwan Strait. As military spending consumes a growing share of national output worldwide, the trend suggests that governments are bracing for a prolonged period of strategic competition. Whether such financial muscle translates into greater stability or accelerates an arms race remains an open question, but the message from capitals is clear: deterrence is back in vogue.