On October 4, 2026, the FBI arrested Wanying “Heather” Zhang, a 34-year-old real estate agent from Irvine, California, at Los Angeles International Airport as she prepared to board a flight to Shanghai. Zhang is charged with acting as an unregistered agent of the People’s Republic of China (PRC).

According to the federal criminal complaint and news reports, Zhang and an unidentified man traveled to Seattle on September 1, 2025, where they allegedly conducted surveillance of Taiwan President Lai Ching-te’s son, Lai Ting-yu, and his family. Zhang also allegedly sent the license plate numbers of two vehicles parked in front of the victim’s home to a Chinese government contact.

Zhang was reportedly introduced to a PRC government official through a former classmate from the University of International Relations in Beijing, which the FBI identified as having close ties to China’s Ministry of State Security (MSS).

Taiwan’s Presidential Office spokesperson Karen Kuo condemned the case as a typical instance of China’s transnational repression and thanked U.S. authorities for their assistance and protection. She added that Taiwan would continue working with the United States and other democratic allies to combat such illegal acts.

U.S. Officials Condemn PRC Surveillance Plot

In the criminal complaint, FBI Special Agent Kevin Holt wrote that the location and pictures of the close relatives of a high-ranking Taiwanese government official, including images of their homes and cars, could provide the PRC with leverage over Taiwan’s president in a potential conflict. FBI Director Kash Patel posted on X that the Chinese government “allegedly sent an operative to surveil the family of Taiwan’s President ON AMERICAN SOIL.”

On October 6, House Select Committee on China Chairman John Moolenaar (R-MI) stated that the operation “appears intended to help the CCP [Chinese Communist Party] target further action against family members of Taiwan’s President who reside on U.S. soil, a chilling reminder that the CCP’s destabilizing ambitions for the Taiwan Strait are a global threat.” He added, “I hope that President Lai and his family know the Select Committee and the American people stand with them.”

Congressional Attention to PRC Transnational Repression

On June 4, the Congressional-Executive Commission on China (CECC) held a hearing on the PRC’s transnational repression and malign influence in the United States. The commission, chaired by Sen. Dan Sullivan (R-AK) and co-chaired by Rep. Chris Smith (R-NJ), warned in its hearing announcement that PRC authorities and their proxies “seek to intimidate, censor, and silence critics in the United States.” The hearing examined how federal, state, and local governments can work together to protect targeted communities and strengthen law enforcement responses.

On July 14, Sens. Adam Schiff (D-CA) and John Curtis (R-UT) introduced the Stop TNR (Transnational Repression) Act of 2026 (S.4967). The bill would codify a definition of transnational repression in federal criminal law. It would also establish enhanced penalties for federal offenses involving qualifying acts of transnational repression, including up to 10 additional years of imprisonment and an additional fine of up to $100,000.

Implications

Zhang’s arrest highlights how Beijing’s transnational repression can extend beyond Chinese dissidents and diaspora communities to target the immediate families of democratically elected Taiwanese officials, illustrating how extraterritorial surveillance can be weaponized to exert pressure on Taiwan’s leadership.

More broadly, the incident underscores the growing reach of PRC malign operations on U.S. soil and the vital role of U.S. law enforcement in countering such activities. It also reinforces the need for closer U.S.–Taiwan security coordination to safeguard individuals at risk, uphold U.S. sovereignty, and defend Taiwan’s democracy against external intimidation.

Sources:
[1] Taipei Times    [2] U.S. Department of Justice    [3] FBI Director Kash Patel’s X account    [4] House Select Committee on China    [5] Congressional-Executive Commission on China    [6] S.4967 (Stop TNR Act of 2026)

Tsai Ing-wen Highlights Taiwan’s Indispensable Security Role Amid High-Level U.S.–Taiwan Exchanges

On October 7, 2026, Taiwan’s former President Tsai Ing-wen delivered the opening keynote address, titled “Building Security Together: Taiwan’s Role in Global Stability,” at Stanford DEFCON 2026, an annual conference on technology and national security. She argued that deeper international cooperation with Taiwan will not only strengthen its own security but also boost stability in the Indo-Pacific and the resilience of other democracies.
 
Tsai arrived in San Francisco on October 5 for a week-long visit, her first to the United States since leaving office in May 2024. Her visit coincided with a series of other high-level U.S.–Taiwan exchanges, including Taiwan Foreign Minister Lin Chia-lung’s trip to Arizona and visits by separate U.S. congressional delegations to Taiwan.
 
Taiwan’s Role in Global Stability
 
In her speech at Stanford, Tsai highlighted China’s sustained military pressure, cyberattacks, cognitive warfare, information manipulation, and economic coercion against Taiwan, underscoring the challenge of countering persistent authoritarian gray-zone aggression that falls short of open conflict.
 
She then cited Taiwan’s strategic position at the center of the first island chain, the Taiwan Strait’s importance as a vital global trade and energy route, and Taiwan’s critical role in global technology supply chains, particularly semiconductors and artificial intelligence (AI) infrastructure.
 
Tsai emphasized that Taiwan should be seen not merely as a security challenge requiring international support, but as a vital partner capable of strengthening trusted supply chains and contributing to global security and democratic resilience.
 
Foreign Minister Lin Inaugurates Taiwan’s New Arizona Office
 
On October 5, Foreign Minister Lin Chia-lung joined Arizona Governor Katie Hobbs and Phoenix Mayor Kate Gallego to inaugurate Taiwan’s 14th representative office in the United States, located in Phoenix, Arizona.
 
The new office aims to strengthen bilateral cooperation and expand services for Taiwanese residents and businesses in the U.S., particularly as Taiwan Semiconductor Manufacturing Company (TSMC) expands its operations in Arizona.
 
The opening proceeded despite diplomatic pressure from China, whose consulate general in Los Angeles sent two letters urging Hobbs to oppose the office’s establishment. At the ceremony, Hobbs reaffirmed Arizona’s commitment to its partnership with Taiwan, pledging to mobilize available resources to support Taiwanese businesses expanding in the state.
 
U.S. Congressional Delegations Reaffirm Support for Taiwan
 
Two U.S. congressional delegations visited Taiwan in early October and held high-level meetings with Taiwanese officials, including President Lai Ching-te, who met separately with each delegation on October 8.
 
During his visit, Senator Michael Bennet (D-CO) commended Taiwan’s continued investment in its self-defense, including increased funding for military procurement and uncrewed systems. He pledged to work with congressional colleagues to ensure that Taiwan receives the defensive support Congress has authorized and appropriated.
 
A separate delegation, led by House Budget Committee Ranking Member Brendan Boyle (D-PA), included Reps. Andrea Salinas (D-OR) and Tim Kennedy (D-NY). During their meeting with President Lai, Boyle emphasized the shared democratic values underpinning U.S.–Taiwan relations. At the same time, Lai called for expanding bilateral defense cooperation beyond traditional arms sales to joint research and development and joint production of military equipment, particularly drone and counter-drone systems.
 
A More Multifaceted, Multilayered U.S.–Taiwan Partnership
 
These high-level exchanges reflect a deepening U.S.–Taiwan strategic partnership amid mounting Chinese coercion. Bilateral ties now span security, supply-chain resilience, and technological innovation across federal, state, and local levels, while calls for joint defense research and co-production pave the way for closer industrial integration.
 
Together, they reinforce Tsai’s central message: Taiwan is an indispensable contributor to shared security and prosperity, and deeper engagement and cooperation with Taiwan strengthens the collective resilience of its democratic partners.
 
Sources:
[1] Focus Taiwan    [2] Focus Taiwan    [3] Taipei Times    [4] Taiwan’s Presidential Office    [5] Taiwan’s Presidential Office

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On September 28, 2026, the National Chung-Shan Institute of Science and Technology (NCSIST) opened its new Minsyong campus in Chiayi County and broke ground on the adjacent Minsyong Aerospace and Drone Industrial Park. The facilities are intended to expand Taiwan’s capacity to develop, test, and manufacture uncrewed systems while integrating NCSIST’s technical capabilities with the country’s growing drone industry. NCSIST is Taiwan’s premier defense research and development institution overseen by the Ministry of National Defense (MND).
 
Construction of NCSIST’s 5.12-hectare Minsyong campus began in December 2023 with an investment of NT$1.11 billion (US$34.8 million). The adjacent industrial park, scheduled for completion in 2028, has been allocated NT$6.859 billion (US$216 million) in public infrastructure funding approved by the Executive Yuan. It is expected to host about 100 companies, create 1,200 jobs, and generate NT$8 billion (US$251.7 million) in annual output.
 
Building Taiwan’s Indigenous Drone Industrial Base
 
By linking defense R&D and testing with private-sector manufacturing, Taiwan is building a more comprehensive and resilient domestic drone ecosystem — an important foundation for replenishing uncrewed systems and sustaining production in a prolonged conflict or blockade.
 
Taiwan’s drone industry is expanding rapidly. Industry output reached NT$12.9 billion (US$405 million) in 2025, more than 2.5 times the previous year’s level, while more than 267 companies are now involved in systems integration and key-component manufacturing.
 
Presiding over the opening ceremony of the NCSIST campus, President Lai Ching-te noted that lessons from Ukraine and evolving security dynamics in the Indo-Pacific have underscored the growing importance of uncrewed systems in modern defense.
 
Emphasizing Taiwan’s goal of becoming an Asian hub for the democratic drone supply chain, Lai stated, “We must deepen cooperation with democratic partners and jointly build a safer and more resilient uncrewed aircraft supply chain, providing solid support for Indo-Pacific regional peace and stability.”
 
Scaling Taiwan’s Drone Industry for Global Markets
 
The expansion of Taiwan’s drone industry comes as the United States, European nations, and other democratic partners seek secure, trusted alternatives to PRC-linked technologies and manufacturing. A July 2025 report noted that China accounted for an estimated 70% to 80% of the global drone market, making supply-chain diversification a growing economic and security priority.
 
Taiwan has made significant progress in building a “non-red” drone supply chain with international partners. Drone exports rose from 3,472 units in 2024 to 122,726 in 2025, while exports from January through July 2026 reached about 210,000 units worth NT$7.56 billion (US$237.6 million), exceeding the full-year 2025 totals in both volume and value.
 
The new Minsyong Aerospace and Drone Industrial Park will further strengthen Taiwan’s domestic manufacturing capacity, reflecting the nation’s broader effort to turn its industrial strengths into both greater defense resilience at home and a more strategic role in trusted global drone supply chains.
 
Sources:
[1] Taipei Times    [2] Research Institute for Democracy, Society and Emerging Technology (DSET)    [3] DSET

U.S. Commitment to Taiwan’s Security Remains Firm Amid Bipartisan Congressional Backing and Initial F-16V Deliveries

Following the Trump–Xi summit in Washington, U.S. House Speaker Mike Johnson (R-LA) said in an interview on September 28, 2026, that the U.S. needs Taiwan to remain “stable and independent,” citing Taiwan’s vital importance to U.S. national security and the economy. Johnson estimated that Trump will have completed about US$40 billion in arms sales to Taiwan across his two terms.

Trump approved nearly US$18.3 billion in arms sales to Taiwan during his first term from 2017 to 2021. In his second term, Trump also approved eight proposed arms sales totaling US$11.1 billion in December 2025, the largest-ever U.S. weapons package for Taiwan.

Separately, on October 2, 2026, Taiwan received the first two of 66 newly built F-16V Block 70 fighter jets purchased from the U.S., marking the first deliveries under the 2019 sale approved during Trump’s first term.

Bipartisan Congressional Support for Taiwan Arms Sales

In a September 30 statement, Senate Armed Services Committee Chairman Roger Wicker (R-MS) reaffirmed the legal and policy foundations of U.S. security support for Taiwan. He stressed that the Taiwan Relations Act remains the law of the land, and that the Six Assurances include the commitment not to consult Beijing on U.S. arms sales to Taiwan.

In an interview reported on October 1, Congressional Taiwan Caucus Co-Chair Ami Bera (D-CA) said U.S. commitments to Taiwan remain unchanged and that the caucus’s bipartisan members continue to press for arms sales to Taiwan aimed at strengthening deterrence and preserving the cross-strait status quo rather than escalating tensions.

Taiwan’s Critical Role in U.S. Security and Strategic Competition

In a September 27 interview, Taiwan’s Representative to the U.S. Alexander Yui emphasized that Taiwan matters to the U.S. in both strategic and technological terms. Taiwan sits along the First Island Chain while playing an integral role in semiconductors and AI infrastructure, a relationship he described as one of “symbiotic” interdependence.

Emphasizing “peace through strength,” Yui also stressed that Taiwan is taking greater responsibility for its own defense by increasing defense spending and seeking the weapons it needs to strengthen deterrence and avoid conflict.

Implications

Strengthening Taiwan’s self-defense is not merely support for Taiwan, but a vital investment in U.S. security and Indo-Pacific deterrence. Timely arms sales, security assistance, and equipment deliveries are essential to turning U.S. commitments into tangible defensive capabilities and sustaining credible deterrence in the Taiwan Strait.

Sources:
[1] Taipei Times    [2] US-Taiwan Business Council    [3] Taipei Times    [4] Office of Sen. Roger Wicker    [5] Focus Taiwan    [6] CBS News

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The September 24 Trump-Xi summit produced limited concrete outcomes, while the pending US$14 billion Taiwan arms package remained on hold amid continued congressional pressure for the administration to move it forward. U.S. President Donald Trump met Chinese President Xi Jinping at the White House for their second summit this year, with Taiwan as one of the key points of contention.

While U.S. officials reaffirmed following the summit that U.S. policy toward Taiwan remains unchanged, Xi urged the United States to “oppose Taiwan independence,” according to China’s official readout. Following the summit, Taiwan’s Ministry of Foreign Affairs (MOFA) rejected Xi’s remarks on Taiwan as part of Beijing’s usual tactic of “distorting facts” to unilaterally advance its positions and illegitimate claims, reiterating that Taiwan’s future can only be decided democratically by the people of Taiwan.

FAPA Condemns Beijing’s Escalating Coercion

On September 24, FAPA joined hundreds of advocates from the Taiwanese, Uyghur, Tibetan, and Hong Kong communities who gathered near the White House to protest Xi’s visit. Addressing the crowd, FAPA Executive Director Anny Chiao-Yun Hsiao stated: “We are here to ensure that Taiwan stays safe and free. [Xi Jinping,] keep your hands off Taiwan!”

As the People’s Republic of China’s (PRC) gray-zone coercion expands beyond the Taiwan Strait and across the First Island Chain, continued U.S. arms sales are critical to Taiwan’s defense. A CommonWealth Magazine investigation analyzing 1.8 billion vessel-tracking records documented China Coast Guard operations extending east of Taiwan and throughout the First Island Chain, underscoring Beijing’s unilateral efforts to alter the status quo in the Western Pacific.

FAPA National President Dr. Su-Mei Kao emphasized the broader strategic stakes of Taiwan’s defense. “Credible deterrence along the First Island Chain is directly tied to critical U.S. security interests in the Indo-Pacific,” Dr. Kao said. “Strengthening Taiwan’s ability to defend itself is an indispensable investment in U.S. security and regional peace, helping to reduce the risk of a wider conflict that would require far greater American military resources.”

Congressional Support for Taiwan’s Self-Defense

Congressional support for Taiwan’s defense intensified around the summit. In the Senate, bipartisan Senate Taiwan Caucus Co-Chairs Elissa Slotkin (D-MI) and Thom Tillis (R-NC) urged the administration to immediately notify Congress and move forward with the US$14 billion arms package, stressing that Taiwan arms sales serve American interests and must never be used as a bargaining chip in negotiations with China.

In the House, Foreign Affairs East Asia and Pacific Subcommittee Chair Young Kim (R-CA) and Ranking Member Ami Bera (D-CA) joined five other members in a bipartisan letter stressing that increasing Taiwan’s self-defense capabilities, including through additional arms sales, is “essential to U.S. security.” They urged the administration to make clear that, consistent with the Six Assurances, the United States will not consult with the PRC on arms sales to Taiwan.

Call for Action

FAPA urges Congress to pass the Six Assurances to Taiwan Act (S.3208 / H.R.3452) before the end of the 119th Congress, while calling on the Trump administration to move forward without further delay on the pending US$14 billion arms package and ensure the timely delivery of critical defense capabilities already approved for Taiwan.

“U.S. policy must reinforce Taiwan’s ability to defend itself and must never oppose Taiwan’s independence — not allow Beijing to dictate Taiwan’s defense needs or turn Taiwan’s security and independent sovereignty into leverage in U.S.-China negotiations,” FAPA President Dr. Kao emphasized.

“For more than four decades, the Six Assurances first articulated by the Reagan administration in 1982 have represented an enduring U.S. commitment to Taiwan,” Dr. Kao said. “Codifying them would enshrine those commitments in law and send a clear political signal not only to Taiwan, but also to U.S. allies and partners across the Indo-Pacific, that U.S. commitments to regional security remain durable across administrations.”

Sources:
[1] Reuters    [2] Taipei Times    [3] Focus Taiwan    [4] Tibetankyi’s X account    [5] CommonWealth Magazine    [6] Office of Sen. Elissa Slotkin    [7] Office of Rep. Young Kim    [8] S.3208 / H.R.3452 (Six Assurances to Taiwan Act)

Taiwan’s UN Participation and Cross-Strait Stability Draw Broad International Support

Taiwan drew support from its diplomatic allies and major democratic partners during the 81st UN General Assembly (UNGA) in New York. During the General Debate on September 23 and 25, leaders of five of Taiwan’s diplomatic allies — Paraguay, Eswatini, Palau, the Marshall Islands, and Tuvalu — called for Taiwan’s inclusion in the UN system.
 
Paraguayan President Santiago Peña called Taiwan’s exclusion a “stain” on the UN and warned of the global consequences of a cross-strait conflict. Eswatini’s King Mswati III urged the UN to allow Taiwan to participate in its meetings and activities. Palau President Surangel Whipps Jr. said excluding Taiwan’s 23 million people contradicts the UN Charter’s commitment to “We the peoples.”
 
Marshall Islands President Hilda C. Heine called for Taiwan’s participation and rejected Beijing’s use of UNGA Resolution 2758 to justify coercion. Tuvaluan Prime Minister Feleti Teo called for Taiwan’s meaningful participation and warned that China’s military activity around Taiwan threatens regional security and trade.
 
Taiwan has been unjustly excluded from the UN system and many other international organizations for more than five decades. Beijing maliciously conflates UNGA Resolution 2758 — which neither contains the word “Taiwan” nor determines Taiwan’s sovereign status — with its fictitious “One China principle” to falsely claim Taiwan as part of the People’s Republic of China (PRC).
 
Taiwan’s Participation and Cross-Strait Stability in Focus
 
These expressions of support come at a consequential moment for Taiwan’s international participation, as Taiwan’s diplomatic allies and like-minded partners have used this year’s UNGA High-Level Week to highlight both Taiwan’s unjust exclusion from international organizations and the critical importance of maintaining peace and stability across the Taiwan Strait.
 
U.S. Secretary of State Marco Rubio, South Korean Foreign Minister Cho Hyun, and Japanese Foreign Minister Toshimitsu Motegi also issued a joint statement following their meeting in New York on September 21, supporting Taiwan’s meaningful participation in appropriate international organizations and, in an apparent reference to China, opposing unilateral attempts to change the cross-strait status quo.
 
A day later, representatives from Australia, France, Germany, Japan, New Zealand, Poland, South Korea, and the United Kingdom similarly emphasized the importance of cross-strait peace and explicitly opposed unilateral changes to the status quo in a joint statement. The eight countries also stressed that security and prosperity in Europe and the Indo-Pacific are increasingly interconnected.
 
Implications
 
Taken together, calls for Taiwan’s UN participation challenge Beijing’s misuse of UNGA Resolution 2758, while broader support for cross-strait stability underscores the stakes for regional security, economic resilience, and global supply chains.
 
The U.S. and its partners should turn these statements into concrete support for Taiwan’s substantive participation across the UN system and other international organizations, while affirming the principle of self-determination — that only the people of Taiwan can decide Taiwan’s future.
 
Sources:
[1] Focus Taiwan    [2] Focus Taiwan    [3] Taipei Times    [4] Taipei Times

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Held in Taipei from September 2–4, SEMICON Taiwan 2026 underscored Taiwan’s growing role in the U.S.-led Pax Silica framework, while highlighting its central role in the global AI and semiconductor ecosystem and its indispensable strategic value to trusted technology supply chains and economic security.
 
U.S. officials used the event to emphasize deepening U.S.-Taiwan cooperation under Pax Silica, a U.S.-led initiative to build a secure and resilient technology ecosystem spanning critical minerals, energy, semiconductors, and AI infrastructure. Taiwan endorsed the Pax Silica principles through a January 2026 U.S.-Taiwan joint statement.
 
Record Scale
 
Held at a record scale, the three-day exhibition brought together more than 1,300 exhibitors and 4,300 booths, drawing more than 130,000 industry professionals from 65 countries.
 
A major shift this year was the growing participation of cloud service providers and data-center companies, reflecting the semiconductor industry’s expanding role in the broader AI infrastructure ecosystem.
 
Technology giants such as Google, Microsoft, NVIDIA, AMD, MediaTek, and Foxconn took part alongside chipmakers and suppliers, with the exhibition showcasing technologies ranging from advanced AI chips and packaging to silicon photonics, quantum technology, smart wafer manufacturing, and physical AI applications such as smart robots and drones.
 
Taiwan’s Growing Role in the AI Ecosystem and U.S.-Led Pax Silica
 
Taiwan’s semiconductor industry revenue is projected to approach US$300 billion this year, up more than 40 percent, driven by surging demand for AI technology, Taiwan Semiconductor Industry Association President Wu Chih-i said.
 
In prerecorded remarks, U.S. Undersecretary of State for Economic Affairs Jacob Helberg said that Taiwan has been at the center of the semiconductor industry for decades and is investing in the U.S. to expand its manufacturing base. He described the United States and Taiwan as “partners in securing the technology that will shape the rest of this century.” While noting that “concentration without resilience is a vulnerability,” he highlighted Pax Silica as a framework for trusted technology cooperation.
 
At a SEMICON Taiwan side conference, AIT Acting Deputy Director Eric Frater reaffirmed that Taiwan sits at “the very heart of the technology ecosystem” amid deepening bilateral cooperation under Pax Silica. He also highlighted growing Taiwanese investment in the U.S., noting that at May’s SelectUSA Summit, Taiwan’s Minister of Economic Affairs said about 20 Taiwanese tech firms planned roughly US$35 billion in new U.S. investments, primarily in the semiconductor and AI server sectors.
 
Implications
 
SEMICON Taiwan 2026 illustrates how the U.S.-Taiwan technology relationship is evolving beyond commercial interdependence into an increasingly strategic partnership centered on AI, economic security, and trusted supply chains. Taiwan’s endorsement of the Pax Silica principles, combined with growing bilateral investment and technology cooperation, is embedding Taiwan more firmly within U.S.-led trusted networks.
 
Expanding Taiwan’s participation in international economic, standard-setting, and technology-security initiatives would strengthen not only Taiwan’s democratic resilience and international standing, but also the long-term technological competitiveness and economic security of the United States and its allies.
 
Sources:
[1] Taipei Times    [2] American Institute in Taiwan (AIT)    [3] U.S. Department of State    [4] Focus Taiwan    [5] Focus Taiwan    [6] Taipei Times

Taiwan Pushes US$4.59 Billion Supplementary Defense Budget as U.S.–Taiwan Drone Cooperation Deepens

On September 3, Taiwan’s Cabinet approved a NT$607.6 billion (US$19.12 billion) supplementary budget proposal for submission to the Legislative Yuan, including NT$145.7 billion (US$4.59 billion) in additional defense spending. Much of the defense funding is aimed at restoring or accelerating capabilities excluded from an earlier special defense package. The funding covers drones, new surface-to-air defense systems, munitions, and other capabilities to accelerate Taiwan’s military buildup amid escalating Chinese coercion.
 
Of the supplementary defense request, NT$55.9 billion (US$1.76 billion) is earmarked for three categories of uncrewed systems requested by the Ministry of National Defense (MND). The MND said that this allocation combines NT$13.8 billion in delayed 2026 requirements with NT$42.1 billion planned for 2027. Target deliveries for 2027 include more than 40,000 coastal attack drones, over 600 coastal reconnaissance drones, and an initial batch of over 100 small one-way strike unmanned surface vessels (USVs).
 
Filling Gaps Left by Legislative Cuts
 
The Cabinet’s proposal follows the Legislative Yuan’s passage of the opposition-backed Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry. The Act calls for NT$40 billion (US$1.26 billion) to be budgeted annually, in principle, for six consecutive years through the general budget, while allowing additional funding subject to legislative approval. The legislation includes the same three categories of uncrewed systems among a broader set of defense-procurement and industry-development measures.
 
MND Strategic Planning Department Director Lt. Gen. Huang Wen-chi said the supplementary budget reflects the military’s force-buildup schedule after lawmakers cut NT$470 billion (US$14.79 billion) from the Cabinet’s proposed NT$1.25 trillion (US$39.34 billion) special defense package in May.
 
The Cabinet’s latest supplementary proposal also includes funding for indigenous Albatross II intelligence, surveillance, and reconnaissance (ISR) drones and the Chiang-Kong mid-altitude anti-tactical ballistic missile system, as well as NT$7.3 billion (US$230 million) for “urgent munitions stockpiles” and NT$900 million (US$28 million) for the Taiwan Tactical Network, a system aimed at improving the situational awareness of frontline troops.
 
Another NT$64.5 billion (US$2.03 billion) is allocated to two classified projects believed to involve funding previously removed by the Legislature for Taiwan-U.S. co-development programs.
 
U.S.–Taiwan Drone Supply Chains Deepen
 
The proposal comes as U.S. defense technology companies deepen their ties with Taiwan’s autonomous-systems industry. At a SEMICON Taiwan forum, a Shield AI representative said Taiwan’s share of the materials and components used in the company’s aircraft had increased from less than 1 percent in 2024 to 16 percent and could soon reach 25 percent. Shield AI has also integrated its Hivemind autonomous-piloting software with Taiwanese platforms.
 
Meanwhile, U.S. defense contractor AeroVironment said it has sourced more than US$20 million in panels, sensors, batteries, and other components from Taiwan over the past three years. The company is working with Taiwanese partners on its Switchblade 300 loitering munition and is seeking to develop and manufacture additional systems in Taiwan.
 
Implications
 
Taiwan’s advanced manufacturing capacity, combined with growing cooperation with U.S. partners, is positioning the country as an increasingly important part of trusted, non-PRC drone supply chains—an especially critical role given China’s dominant position in the global commercial-drone ecosystem and in key upstream inputs.
 
To translate that opportunity into a resilient defense-industrial base and strengthen deterrence across the Indo-Pacific, Taiwan will also need greater component standardization, interoperability with U.S. and allied systems, and deeper non-PRC sourcing for batteries, permanent magnets, and rare-earth materials.
 
Sources:
[1] Focus Taiwan    [2] Military News Agency    [3] Focus Taiwan    [4] Taipei Times

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On August 27, Taiwan’s Legislative Yuan passed the opposition-led Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry, directing the Ministry of National Defense (MND) to prioritize domestically produced “low-cost, high-performance” unmanned systems. The measure comes as Taiwan seeks to strengthen its asymmetric defense capabilities and build a more resilient domestic drone industry and trusted, non-PRC supply chains.
 
The legislation requires the central government to earmark, in principle, NT$40 billion (US$1.26 billion) annually for six consecutive years, totaling up to NT$240 billion (US$7.56 billion), through the regular general budget, while allowing additional funding based on actual needs, subject to legislative approval. This framework replaces the Cabinet’s proposed NT$210 billion (US$6.6 billion) multi-year special-budget approach.
 
Following a rare cross-party compromise, the final version includes three critical defense systems requested by the MND: coastal attack drones, coastal reconnaissance drones, and small suicide unmanned surface vehicles, which had been excluded from earlier proposals by the opposition Kuomintang (KMT) and Taiwan People’s Party (TPP).
 
Concerns Over Funding Constraints
 
The MND expressed “regret” that the Cabinet’s proposed special budget failed to pass, saying the rejected proposal had been designed to acquire urgently needed “asymmetric” combat capabilities “within the shortest possible time.”
 
On August 26, Defense Minister Wellington Koo criticized the opposition’s NT$40 billion annual spending cap as insufficient, noting that the MND is separately seeking an additional NT$31.1 billion for other unmanned systems in its 2027 general budget.
 
In an interview published on August 26, Taiwan’s Vice President Hsiao Bi-khim similarly warned that a fixed annual cap could disrupt procurement schedules, as contract payments can rise sharply during peak delivery periods. She urged lawmakers to respect the MND’s force-building schedule and requirements, while emphasizing that Taiwan must demonstrate a steadfast commitment to self-defense to prevent Beijing from miscalculating Taiwan’s resolve.
 
Dispute Over Oversight
 
Another key dispute centered on oversight. The Cabinet favored MND leadership to ensure alignment with military operational requirements, while the opposition backed the Ministry of Economic Affairs (MOEA), citing its role in industrial development and regulation.
 
In the same interview, Vice President Hsiao also argued that the MND should lead because it is best positioned to determine the types, models, specifications, and functions of drones needed for Taiwan’s defense.
 
In the final version, the MOEA will share implementation with the MND, overseeing industry development, standards for “indigenous” unmanned systems and “trustworthy supply chains,” manufacturer accreditation, cybersecurity-related reviews, and the establishment of at least three drone testing sites within one year.
 
Building Deterrence Through Mass and Alliance Integration
 
The bill is a meaningful step toward stronger deterrence by expanding Taiwan’s drone production and procurement. Unmanned systems are increasingly central to modern warfare, particularly as Taiwan faces sustained Chinese gray-zone pressure and prepares for potential military contingencies.
 
Still, annual spending constraints and repeated legislative budget reviews could limit procurement flexibility and slow the buildup. To mitigate near-term funding risks, the Executive Yuan reportedly plans to countersign the act and fund unmanned systems through this year’s supplemental budget. This could help sustain Taiwan’s defense buildup and strengthen trusted supply chains with the United States and other democratic partners.
 
Sources:
[1] Taipei Times    [2] Taipei Times    [3] Focus Taiwan    [4] Focus Taiwan    [5] Focus Taiwan

China Expands “Quasi-Quarantine” Campaign Around Taiwan with Record Maritime Activity

China has sharply increased the scale of its coercive operations by government vessels in waters around Taiwan, including coast guard, oceanographic research, and other official ships. Taiwan’s Coast Guard Administration (CGA) reported that a record 244 Chinese government vessels were detected around Taiwan’s main island in July 2026, compared with 55 in June and 30 in May. Another 152 vessels were detected around the main island during the first 21 days of August.
 
The record activity comes as Beijing continues to expand its maritime presence around Taiwan, particularly in waters east of the island nation. Since May, the CGA has recorded 1,247 Chinese vessels around Taiwan and several of its outlying islands. About 60 percent were China Coast Guard vessels, while research and other government vessels made up the rest. The figures do not include Chinese naval warships, which operate around Taiwan on a near-daily basis.
 
A recent Mainland Affairs Council (MAC) poll found that 70.5 percent of respondents in Taiwan viewed recent Chinese coast guard patrols east of Taiwan as an act of “ill intent.” The survey also showed that 81.2 percent opposed Beijing’s “one country, two systems” framework, while 83.9 percent supported the position that Taiwan’s future should be decided by its 23 million people.
 
Escalating the “Quasi-Quarantine” Campaign: The Growing Role of Research Vessels
 
Taiwanese coast guard officials have warned that the situation is becoming “increasingly severe,” while analysts and observers note that Beijing’s expanding maritime presence is fueling concerns over a potential quarantine or blockade that could restrict Taiwan’s access to energy and other critical supplies.
 
A particularly concerning development is the growing role of Chinese research vessels, especially in waters east of Taiwan. China operates more than 120 oceanographic research vessels, with the CGA tracking about 41 that operate in Taiwan’s waters.
 
In May, the Tong Ji conducted suspected oceanographic sampling and seabed surveys along the edge of Taiwan’s restricted waters that could contribute to China’s anti-submarine warfare databases, according to the CGA.
 
More recently, the Xiang Yang Hong 03 operated over deep-sea trenches and undersea telecommunications cables east of Taiwan under China Coast Guard and maritime militia escort, with analysts assessing that it was collecting hydrographic data from the Ryukyu and East Taiwan trenches to support People’s Liberation Army (PLA) anti-submarine warfare.
 
Implications
 
While China has long used gray-zone maritime tactics around Taiwan, the recent surge in these operations reflects Beijing’s calculated effort to create the false impression of legitimate jurisdiction over Taiwan’s surrounding waters.
 
Beijing seeks to establish a “new normal” in which China’s growing maritime presence helps normalize its unlawful claims to authority in the waters around Taiwan, steadily altering the status quo and making those changes harder to reverse.
 
The United States and its democratic partners must firmly reject Beijing’s unilateral efforts to erode Taiwan’s sovereignty and sovereign rights through gray-zone coercion, while bolstering multilateral maritime domain awareness and operational coordination to safeguard regional security and uphold a free and open Indo-Pacific.
 
Sources:
[1] Taipei Times    [2] Taiwan’s Mainland Affairs Council (MAC)    [3] Formosan Association for Public Affairs (FAPA)

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On August 10, 2026, the four co-chairs of the U.S. Congressional Taiwan Caucus ––  Representatives Mario Diaz-Balart (R-FL), Ami Bera (D-CA), Andy Barr (R-KY), and Greg Stanton (D-AZ) –– sent a joint letter to Lithuania’s top leaders, urging the country to maintain its substantive relationship with democratic Taiwan amid the People’s Republic of China’s (PRC) “bullying and coercion.”
 
The Lithuanian Ministry of Foreign Affairs responded by reaffirming Taiwan as an “important regional partner” and stating that Lithuania would continue to pursue mutually beneficial cooperation with Taiwan. Prime Minister Mindaugas Sinkevičius also thanked the U.S. lawmakers. Speaker of the Seimas (Lithuanian Parliament) Juozas Olekas, however, noted that Lithuania’s support for Taiwan “remains strong,” while stressing that this would not alter Vilnius’s efforts to normalize relations with Beijing.
 
Lithuania’s Experience Facing PRC Coercion
 
The bipartisan appeal from the Congressional Taiwan Caucus co-chairs underscores growing concern over the PRC’s bullying and coercion against countries that seek to deepen ties with Taiwan.
 
Lithuania became a prime target of Beijing’s economic coercion after allowing the “Taiwanese Representative Office in Lithuania” to open in 2021. In retaliation, Beijing downgraded diplomatic ties and imposed a de facto trade embargo, targeting Lithuanian exports and disrupting European Union supply chains.
 
Lithuania has sought to maintain cooperation with Taiwan while also working to repair relations with China. In February 2026, then-Lithuanian Prime Minister Inga Ruginienė described the 2021 decision to open the representative office in Vilnius under the name “Taiwanese” as a “mistake,” noting that Vilnius had begun taking “small first steps” toward restoring ties with Beijing.
 
Talks on a new economic cooperation action plan with Taiwan were temporarily paused in June 2026 amid Lithuania’s political transition. Nonetheless, Vilnius resumed negotiations in July after the new government under Prime Minister Mindaugas Sinkevičius took office.
 
U.S. Congress Seeks to Counter PRC Coercion Against Taiwan’s Partners
 
Lithuania’s experience illustrates the broader challenge facing countries that deepen official or unofficial ties with Taiwan, as Beijing can impose economic costs to pressure governments into policy reversals.
 
To address this challenge, U.S. lawmakers have pursued bipartisan legislation specifically designed to help Taiwan’s partners withstand PRC pressure. The Taiwan Allies Fund Act was introduced in the Senate in March 2025 (S.1216) and in the House in April 2025 (H.R.2559). The Senate Foreign Relations Committee advanced S.1216 in January 2026, and the bill was reported with an amendment in February.
 
The House version would authorize $120 million over three years from fiscal years 2026 through 2028, while the amended Senate version would authorize $30 million over the same period, under the Countering PRC Influence Fund (CPIF). This assistance would support countries facing PRC coercion for maintaining or strengthening ties with Taiwan.
 
Implications
 
As Lithuania and other European countries such as Czechia remain key U.S. partners on Europe’s strategic frontline, Beijing’s efforts to capitalize on shifting domestic political dynamics to weaken their ties with Taiwan warrant close attention.
 
For Taiwan, sustaining robust ties with democratic partners helps reinforce its sovereignty and expand its international space. Lithuania’s experience also underscores the value of pairing diplomatic support with practical economic security measures to mitigate the economic costs of resisting PRC coercion and strengthen democratic resilience.
 
Sources:
[1] Office of Rep. Mario Diaz-Balart    [2] Taipei Times    [3] Asia Society Policy Institute    [4] Taipei Times    [5] Focus Taiwan    [6] S.1216 / H.R.2559 (Taiwan Allies Fund Act)

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