Taiwan is pouring record money into missile defense to counter China, a sign that fears of a conflict across the strait keep growing.

• Taiwan's military wants to spend over a billion dollars on a new home-built missile system, the Strong Bow, to shoot down Chinese ballistic and cruise missiles.
• The money is part of a record defense budget for 2027 worth about $35 billion, or roughly 3% of the island's entire economy.
• Strong Bow is an upgrade of an existing Taiwanese system and is meant to hit targets high in the sky, working alongside US-made Patriot missiles that cover lower altitudes.
• The Army also wants 178 new armored combat vehicles, and the first two of 66 F-16V fighter jets bought from the US are on their way to Taiwan.
• Lawmakers still have to approve the budget, and they were slow with the last one, only signing off on the 2026 budget in mid-August.

Outlook: The first Strong Bow missiles are due to reach Taiwan's Air Force in 2028, but the spending plan faces a fight in parliament first.