Taiwan's president Lai Ching-te used the run-up to the Sept. 3 Armed Forces Day to promise record military spending and better pay for troops — a signal of resolve aimed at Beijing and at Washington.

• Next year's defense budget will top NT$1 trillion for the first time, staying above 3% of the island's economy.
• The reason given is China's growing pressure and a fast-shifting world, with deterrence framed as the way to keep the peace.
• Money will go into home-built weapons, a domestic arms industry, AI, and drones.
• Soldiers, teachers, and civil servants get a 4% raise in January, the fifth pay bump in a decade.
• Public backing is being courted too: airlines now board troops first, and hundreds of brands offer discounts at thousands of stores.

Outlook: Expect the record budget to draw sharp words from Beijing and a warmer reception in Washington, where allies have pressed Taiwan to spend more on its own defense.