At the Democratic Progressive Party's anniversary celebration, Taiwanese President Lai Ching-te attributed obstacles to his administration to Chinese infiltration and a Legislative Yuan where the ruling party is outnumbered by the opposition, while also announcing plans to hand out NT$10,000 in cash to every citizen next year — good news for people's wallets, but pressure on public finances.

• The government plans to distribute an "AI dividend" of NT$10,000 per person to all citizens next year, describing it as returning the fruits of tax revenue growth to the public.
• The Kuomintang caucus has bid higher, calling for a universal handout of NT$20,000 per person; Premier Cho Jung-tai responded that this generation's debt must not be left to the next.
• Lai said Taiwan faces the threat of Chinese military force and united front work at home, and that the ruling party's failure to secure a legislative majority, along with constant disputes, has added many unnecessary difficulties to governing.
• Next year's defence budget, including foreign arms purchases and indigenous defence programmes, exceeds NT$1 trillion, and the government is separately seeking a supplementary budget of nearly NT$60 billion for drones, aiming to make Taiwan the Asian hub of a democratic drone supply chain.
• The latest polls show Lai's trust rating has climbed back above 50 percent, the first time since April this year, while public antipathy towards the Chinese Communist Party has hit a more than five-year high.

Outlook: With 60 days to go before the local elections, the fight over the size of the cash handout and the Control Yuan personnel nominations will be the first major battle between the ruling and opposition camps in the Legislative Yuan's new session.