Taiwan is raising defense spending sharply for the first time past the trillion-dollar mark, drawing angry warnings from Beijing — bad news for cross-strait relations, but a sign Taipei is digging in.

• Taiwan's cabinet approved next year's defense budget at NT$1.12 trillion, up 18% and above 3% of the island's total economy.
• The money is aimed at building a home-grown arms industry and new weapons using artificial intelligence and drones.
• China's Taiwan Affairs Office called it a reckless attempt to "resist unification by force," saying it will bring disaster to Taiwanese people.
• Taipei's Mainland Affairs Council brushed the warnings off as old and repetitive, saying a country without defense is simply at the mercy of others.
• Chinese coast guard ships keep rotating through waters east of Taiwan, and Taiwan admits its own vessels are older, smaller and heavily outnumbered.

Outlook: Expect more Chinese ship patrols around Taiwan and more pressure on Taipei to fund newer, bigger coast guard and navy vessels.