Taiwan's legislature passed a law pushing the military to buy locally made drones and unmanned boats, a win for Taiwan's defense industry and a signal it is racing to arm itself against China.

• The government must set aside about NT$2,400 billion over six years — roughly NT$400 billion a year — to build up drone makers.
• The defense ministry has to give priority to cheap, high-performance Taiwanese-made drones, including coastal spy drones, attack drones, and small suicide boats.
• Opposition parties KMT and TPP used their majority to push the bill through after nearly three hours of votes, overriding the ruling party's version.
• Companies must pass a "trusted supply chain" certification to get subsidies, and using parts tied to high-risk sources brings clawbacks and fines up to triple the money received.
• Any single drone purchase over NT$100 million must be reported to the legislature within 30 days.

Outlook: The law still needs final proofreading and presidential sign-off before the next session opens, and the fight over how much money actually gets budgeted each year is likely to continue.