2026-0302: Taiwan’s Legislature to Review Special Defense Budget; China’s “Cyber Special Operations” Revealed; Commemorating the 228 Massacre

Amid U.S. Pressure and Tight Deadlines, Taiwan’s Legislature to Review Special Defense Budget

On February 24, Taiwan’s Legislative Yuan reached a cross-party consensus to advance the Cabinet’s proposed special defense budget to a plenary session on March 6. This moves forward President Lai Ching-te’s NT$1.25 trillion (about US$40 billion), eight-year defense package, which aims to strengthen Taiwan’s asymmetric capabilities through U.S. arms procurement, C5ISR (Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance) upgrades, and defense autonomy programs like the T-Dome air defense system.
 
The consensus follows months of repeated obstructions by opposition parties, the Kuomintang (KMT) and the Taiwan People’s Party (TPP), who control the legislature. In January, the TPP even introduced a much narrower NT$400 billion (US$12.7 billion) alternative, while the KMT said it would put forward its own version. Under the current arrangement, the Cabinet’s proposal will be reviewed alongside the TPP’s version in the Foreign Affairs and National Defense and Finance committees.
 
Why It Matters
 
Defense Minister Wellington Koo (顧立雄) warned that U.S. letters of offer and acceptance (LOAs) for three major arms procurements are set to expire on March 15. He urged lawmakers to authorize the Ministry of National Defense to sign the LOAs before the budget is formally approved, cautioning that failure to do so could lead to contract cancellations, price renegotiations, or delivery delays.
 
The affected systems include:

  • TOW (Tube-launched, Optically tracked, Wire-guided) anti-tank missiles
  • Javelin anti-armor missiles
  • M109A7 self-propelled howitzers.


Congressional Attention
 

Demonstrating growing concern in Washington, 37 bipartisan members of the U.S. Senate and House of Representatives — led by Sens. Pete Ricketts (R-NE) and Chris Coons (D-DE), along with Reps. Young Kim (R-CA) and Ami Bera (D-CA) — sent a rare bipartisan, bicameral letter on February 12, urging Taiwan’s Legislative Yuan leadership to “meet the moment” and pass the robust special defense budget.

While reaffirming the U.S. commitment to support Taiwan’s self-defense capabilities and addressing the weapons delivery backlog, the U.S. lawmakers warned that without a significant increase in defense spending — at levels reflected in President Lai’s proposed special budget — Taiwan’s progress in military readiness would be insufficient to deter a PRC blockade or invasion.

Implications

As the legislative impasse begins to thaw, Taiwan is actively seeking an extension of the deadline to sign U.S. arms sales LOAs. At a press conference on February 11, Defense Minister Koo cautioned that prolonged delays jeopardize deterrence, noting a 23% increase in Chinese military aircraft incursions detected in 2025 compared to 2024. He warned that failure to pass the special defense budget could leave Taiwan as a “breach” in the Indo-Pacific’s collective defense posture against China’s accelerating military expansion.

Sources:
[1] Taipei Times   [2] Washington Post   [3] Focus Taiwan   [4] Focus Taiwan   [5] Taipei Times   [6] Taiwan’s Ministry of National Defense   [7] Office of Sen. Pete Ricketts   [8] Taipei Times   [9] Focus Taiwan


OpenAI Report Reveals PRC “Cyber Special Operations” That Include Taiwan-Related Targeting

On February 25, OpenAI released its “Disrupting Malicious Uses of AI” update, which includes a case study titled “Covert IO: China’s ‘Cyber Special Operations’” (網絡特戰). The report revealed that a Chinese law enforcement individual used ChatGPT to refine internal progress reports tied to a large-scale, state-backed covert influence and harassment campaign operating across more than 300 foreign platforms and deploying hundreds of operators and thousands of fake accounts.
 
Beyond the People’s Republic of China’s (PRC) transnational repression targeting dissidents worldwide, the case study indicates that Taiwan-related narratives and targets appeared within the operational scope of these “cyber special operations.” Most notably, the report describesa meticulously orchestrated campaign targeting Japanese Prime Minister Sanae Takaichi following her public remarks regarding potential Japanese military assistance to Taiwan.
 
Why It Matters
 
The report confirms the Chinese Communist Party’s (CCP) cross-border political warfare is organized, AI-enabled, and transnational — combining fake accounts, platform manipulation, impersonation, and narrative shaping.
 
Coordinated harassment and defamation targeting critics of the CCP and voices supporting Taiwan, including the use of 50 fake accounts to attack a pro-Taiwan X account, and content portraying the human rights group Safeguard Defenders as “foreign spies.”
 
Although many observable posts had limited engagement, the PRC law enforcement user’s own reporting (as summarized in the case study) reveals that China’s AI-enabled influence operations were extensive, including reported 50,000 posts across more than 200 Western platforms.
 
Congressional Attention
 
The U.S. Congress has long focused on countering the PRC’s transnational repression and malign influence, particularly as it relates to coercion against Taiwan and its diplomatic partners.

  • Sen. Jeff Merkley (D-OR) introduced S.Res.226 condemning PRC transnational repression, reflecting bipartisan concern over Beijing’s cross-border intimidation tactics.
     
  • The Countering PRC Influence Fund (CPIF) provides a vehicle for targeted assistance to counter PRC malign influence. The Taiwan Allies Fund Act (S.1216 & H.R.2559) operationalizes this framework by authorizing $40 million annually, totaling $120 million for FY 2026–2028, to support countries facing PRC coercion due to their ties with Taiwan. The Senate bill advanced through the Senate Foreign Relations Committee in January 2026, while its House companion has been incorporated into the State Department reauthorization package.


Implications

The report provides rare insight into Chinese law enforcement’s approach to covert influence operations and underscores how AI is becoming integrated into PRC political warfare workflows.

The targeting of high-ranking foreign officials like Prime Minister Takaichi highlights how Beijing uses these influence operations to pressure international leaders who speak out on Taiwan’s security. Strengthening institutional resilience and clarifying U.S. commitments will be essential to counter Beijing’s cross-border coercion and narrative operations targeting Taiwan.

Sources:
[1] OpenAI “Disrupting Malicious Uses of AI” Update (Full Report)   [2] S.Res.226 (Resolution Condemning PRC Transnational Repression)  [3] S.1216 & H.R.2559 (Taiwan Allies Fund Act)


79 Years After the 228 Massacre: Remembering Taiwan’s Struggle for Democracy

February 28, 2026, marked the 79th anniversary of the 228 Massacre — one of the most painful chapters in modern Taiwanese history. What began on February 28, 1947, as public outrage over corruption and brutality by the occupying Kuomintang (KMT) administration escalated into a violent island-wide crackdown. In the weeks that followed, thousands of Taiwanese intellectuals, community leaders, and civilians were arrested or executed. This tragedy ushered in decades of one-party tyranny, later known as the White Terror, during which the KMT maintained martial law in Taiwan from 1949 to 1987, and fundamental freedoms were suppressed.
 
The 1980 murder of the family members of democracy advocate Lin I-hsiung and the 1981 suspicious death of Professor Chen Wen-chen remain among the most chilling unsolved cases of the era. Furthermore, the scope of authoritarian violence reached far beyond Taiwan’s shores. The 1984 assassination of journalist Henry Liu in California revealed the extent of KMT repression across the Pacific. It was against this backdrop that Taiwanese American activists founded the Formosan Association for Public Affairs (FAPA) in the U.S. in 1982, collaborating with bipartisan members of Congress to advocate for human rights and democracy in Taiwan, and to demand an end to political blacklisting.
 
Today, Taiwan stands as a vibrant democracy — an outcome made possible by decades of sacrifice and perseverance. Commemorating 228 is not only about remembering history, but also about reaffirming a commitment to transitional justice and democratic resilience. This year, various FAPA chapters held memorial events to honor the victims and reflect on Taiwan’s democratic journey. For Taiwanese Americans, 228 is both a solemn remembrance and a reminder that safeguarding freedom requires constant vigilance — both in Taiwan and beyond.