In terms of PPP Taiwan's GDP is considerably larger.
In any case, Sweden chooses to spend only a small proportion of its wealth on defence (something like 1.5% of GDP). On the other hand Taiwan is currently spending about 2.5% of GDP - it would increase to 3% this year assuming nothing is cut. That's quite sustainable.
Well, if Taiwan spends around 4 billion USD per year for equipment purchases, it's only about 300 million USD more than Sweden spends for equipment purchases. 10 billion USD is less than military budget of, say, the Netherlands.
Taiwan's F-16s and Mirage 2000-5s are far from "old", and they have some very modern armaments.
Against PLAAF, they're getting old very soon. And running costs of fighters are very high.
SAMs are static defences that are vulnerable to air-strikes. If they were as wonderful as you say, countries without "offensive" doctrines wouldn't bother with airforces until they'd developed a nice SAM network.
I don't know how many countries without offensive air doctrine there are left, excluding ROC. Anyway, during last ten years AD technology has taken giant leaps while aircraft technology has mainly taken leaps in cost. For a country with small land area, very limited military budget and identifiable, quantitavely large threat SAM's are much better option than fighters nowadays.
ASW and ASuW - the Keelungs can't do that by themselves.
ASuW against what? Is it realistic to expect ROCN to be able to operate in the Straits? ASW campaign running convoys sounds far too ambitious. Above all, all the money spent on large surface combatants is away from forces capable of defence against amphibious landings and air defense.
A blockade would have to extend all around the island - it's easier said than done. Additionally, again, we go back to the issue of dettera
But the question, whether or not future ROCN against future PLAN have any deterrence value at all? Sure, having escort for convoys will make PLAN task more difficult, but not at all impossible. If PRC leadership did commit herself against ROC, it would be, IMHO, a total effort. The proportional deterrence would be no good.
Taiwan has been trying to order submarines for the last 20 years or so. China's opposition has made this very difficult. If it were as simple as popping over to the local 7/11 Taiwan would have already done that.
Well, if the money wasn't used less effectively on surface fleet and interceptors, the local industry could have already reverse-engineered those Dutch subs...
The HF-III isn't in widespread service yet. How could Taiwan have developed a strategy based on a weapon that was still under development?!
Umm, and even before HF-III it has had ASM's for decades. And we're discussing future here.
And Taiwan has only two of them that are combat ready! Future orders will take time, assuming the US plan works out. So in the meantime it needs other vessels.
But every day running those less effective vessels with crews nibbles money from procurement budget. One simply cannot run 26 frigate fleet, 400 fighter air force and divisions of army with less than Dutch budget. Even if the personnel costs are lower than in the Western Europe and some of the equipment is built domestically, so large forces compared to budget sound to relatively uninformed person, like me, that either training or wartime stocks or both are seriously lacking. Though, positively for ROC, it seems that the ROC Army has been seriously streamlined recently.
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