Taiwan President Lai Ching-te announced a NT$1.25 trillion defense budget for 2026-2033, aimed at bolstering the island's military capabilities against China's threats. The 'National Security Action Plan for the Defense of Democratic Taiwan' focuses on developing a multi-layered defense system, enhancing asymmetric warfare capabilities, and investing in AI and high-tech military equipment. The Ministry of National Defense plans to increase defense spending to over 3% of GDP by 2026 and 5% by 2033.