Defense Budget Push: Taiwan’s Cabinet approved a record NT$1.12 trillion ($35b) defense budget for 2027, an 18% jump, with spending aimed at drones, missiles and deterrence as China’s military and political pressure continues. Public Attitudes: A Mainland Affairs Council poll found 70.5% of respondents view Chinese coast guard patrols east of Taiwan as “ill will,” while most also back tougher penalties for violent crimes linked to overseas actors. AI-Driven Trade Demand: Taiwan’s export orders hit a monthly record of $97.94b in July, up 61.9% year-on-year, powered by sustained AI-related demand. Tourism Incentives: Taiwan’s Tourism Administration plans NT$5,000 travel credits for repeat foreign visitors starting in September, with weekly lotteries and redemption via common payment cards. Semicon Taiwan Tech: Modutek will showcase wet processing and AI-enabled subfab management at Semicon Taiwan 2026, highlighting SmartFAB™ tools for smarter chemical delivery and maintenance. Sports—Jones Cup Format Fallout: The Chinese Taipei Basketball Association apologized after a late format change at the William Jones Cup left Strong Group-Pilipinas’ three-peat hopes in jeopardy, despite a big win over Chinese Taipei-Blue. Culture Diplomacy Row: Taiwan protested the Gwangju Biennale’s renaming of the “Taiwan Pavilion,” calling it political censorship and vowing to take action if agreements are breached.