Taiwan plans to spend more than 3% of its economy on defense for the first time, a move Washington praised as a sign of resolve against a growing Chinese military threat.

• Taiwan's cabinet approved a 2027 budget with total defense spending above one trillion Taiwan dollars, a record.
• The US State Department welcomed the plan and said the threat from China has grown sharply.
• Washington said it backs Taiwan buying the weapons it needs, citing decades of US commitments under the Taiwan Relations Act.
• President Lai Ching-te has pushed defense reform and special budgets to hit the 3% target.
• The budget still has to clear Taiwan's legislature, where opposition parties have trimmed past defense spending.

Outlook: The fight now moves to Taiwan's parliament, where the size of the defense package will be tested before the end of the year.