Taiwan is spending big and selling more, with AI demand driving record export orders — good for its tech industry, though tension with China is rising.

• Taiwan's government plans to spend more than NT$3.9 trillion in 2027, with defense alone topping NT$1.1 trillion.
• July export orders hit a record, and September orders are expected to cross the $100 billion mark.
• AI demand is the main reason orders keep climbing.
• Most people in Taiwan see Chinese coast guard patrols near the island as a hostile move.
• The opposition KMT is regrouping, with Han, Lu and Chiang appearing together to push for a return to power.

Outlook: Export strength should hold into the autumn as AI spending continues, while pressure from China and the defense buildup stay in the headlines.