In the wake of changes in international politics and military situations, considerations for global and regional security have changed accordingly, and the nature of factors leading to conflicts and possible threat forms have also changed constantly. Amid in such new situations of global strategy, we should also view the security threats faced by Taiwan and national strategies of Taiwan from more broad perspectives and make necessary changes to them. Lien Chan, chairman of Kuomingtang, and James Soong, chairman of People First Party, visited China in late April 2005 and early May 2005 repectively, and talked with leaders of China and reached some points of consensus with them. However, China has still retained its policy to invade Taiwan with military forces and is still suffocating the survival space of Taiwan in international arena. China has adopted a measure ¡§political opposition, military confrontation,¡¨ which has proved the most serious threat to national security of Taiwan. Taking the role of world cop and in consideration of her interests in East Asia, the United States has deeply got involved in the peace and military security policies or actions in the Taiwan Strait. Taiwan¡¦s political and economic situations and revolution in military affairs (RMA) have been constrained, intangibly and substantively, by China and the United States. It is natural for most Taiwanese people to think that Taiwan¡¦s budgets for defense and military construction will be more or less influenced by major political incidents that involve the United States, China, and Taiwan. In recent years, Taiwan has been an open society and people have been eager to speak out. The immense budgets of units of the Ministry of National Defense and secret examinations of confidential budgets have indirectly caused insufficient needs of Taiwanese people for the cognition of the budget structure for national defense. This discourse tries to investigate how China¡¦s policy of propaganda attacks and military threats to Taiwan, announcements of national security policies of the United States and China that have to do with Taiwan, and the delicate changes in major political events in Taiwan have influcenced the budgeting of Taiwan¡¦s national defense in recent ten years.