
Taiwan’s Lai Warns Budget Delays Threaten Defense Readiness
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Trump Signals Imminent Decision on Taiwan Arms Sales
President Trump said he is discussing possible arms transfers for Taiwan with Xi Jinping and expects to decide soon, a move that could shift U.S. defense posture in the Taiwan Strait and elevate diplomatic tensions. Separately, Taipei’s defense minister says Washington has agreed to accelerate delivery timetables for already‑approved weaponry, compressing operational timelines and raising political, fiscal and supply‑chain pressures.
Defense Spending Surge Redirects $9.8B to Autonomous Systems and Lifts AI Budgets
Congress approved an $839 billion fiscal‑2026 defense appropriation that directs about $9.8 billion to autonomous and unmanned systems and raises the Pentagon’s IT envelope to $66 billion. Paired with roughly $15.1 billion in operational cyber funding and milestone‑linked commercial transactions (equity and contract tranches), the package is compressing the timeline from prototypes to fielded, certifiable autonomy and AI solutions.

IAEA warns military build-up threatens Iran inspection talks
The IAEA says rising military deployments and recent defensive work at Iranian nuclear sites are shrinking the window for agreeing inspection arrangements. Technical proposals have been discussed with Iran’s foreign minister, but on-the-ground hardening and intensified U.S. naval signalling make swift, comprehensive access unlikely.
Beijing Signals Internal Purge Won’t Slow Its Advance on Taiwan
Recent signals from Beijing tie an intensified political consolidation at the top to an uncompromising approach toward Taiwan, implying internal purges are being used to clear obstacles rather than slow external ambitions. The move raises policy and security risks across the Indo-Pacific by increasing the probability of coercive pressure and miscalculation.

Xi tells Trump US should tread carefully on arms to Taiwan amid broader talks
Chinese leader Xi Jinping urged former US president Donald Trump to be cautious about US weapons transfers to Taiwan during a terse phone call that also covered trade, energy and regional security. The limited Xinhua readout and the broader pattern of diplomatic outreach suggest the exchange functioned mainly as a strategic signal within a managed communications posture rather than as a forum for binding agreements.

France passes delayed 2026 budget, unlocking a major military expansion
The French government has pushed through its postponed 2026 budget using extraordinary executive powers, prioritizing a significant defense boost while tightening control over public spending. The package balances higher military procurement and training with targeted tax hikes and a modest reduction in the deficit target, amid political fracturing in Parliament.

Taiwan Rejects U.S. 40% Chip Onshoring Target as Impractical
Taiwan’s government told U.S. officials that moving nearly half of its semiconductor ecosystem to America cannot be done without severe disruption, arguing the target underestimates industrial realities. The push highlights not only bilateral friction but broader allied coordination challenges—illustrated by recent U.S.-South Korea tech disputes—that complicate rapid, wide-ranging relocation of advanced chip supply chains.
Lithuania’s government signals readiness to alter Taiwan office name to mend ties with China
Lithuania’s prime minister indicated willingness to consider changing the designation of Taiwan’s representative office as part of a bid to normalize relations with Beijing. The move would mark a pragmatic shift in Vilnius’s posture with potential trade and diplomatic consequences across the Baltic and wider EU context.