Taiwan's president used the 68th anniversary of the 1958 Kinmen artillery battle to push a bigger military buildup, framing China's pressure as growing rather than fading — a hard line that will read as reassuring in Taipei and provocative in Beijing.

• Lai Ching-te said peace only holds through strength, and that Taiwan will not give up "an inch" of its territory.
• Next year's defense budget will top NT$1 trillion for the first time, staying above 3% of GDP.
• China's coast guard is stepping up pressure in the waters around Kinmen, and its military activity now stretches across the first island chain and wider Indo-Pacific.
• Military and public-sector pay keeps rising: combat-unit bonuses expanded this year, with a 4% across-the-board raise coming in January.
• Old barracks and military housing are being rebuilt under a multi-year program costing well over NT$100 billion.

Outlook: Expect Beijing to answer the budget push with more gray-zone pressure around Kinmen and the Taiwan Strait.