Taiwan plans to spend more than 3% of its economy on defense next year, a move welcomed in Washington and aimed squarely at China.

• Taiwan's cabinet approved a 2027 budget with about $35 billion for defense, just over 3% of the country's total economic output.
• President Lai Ching-te is sticking to a path that reaches 5% by 2030, matching what the White House has pushed allies to do.
• The message to Beijing is that pressure and military activity near Taiwan have not made Lai back off.
• Extra money would go toward better weapons, ammunition, spare parts, tougher training, and keeping frontline troops.
• The plan still has to clear Taiwan's legislature, where opposition parties have already fought Lai's separate eight-year defense package.

Outlook: Expect a drawn-out fight in parliament over the numbers as parties position themselves ahead of elections.