Han Kuang Drill Watch: President Lai Ching-te boarded a Coast Guard vessel and inspected coastal defense and mine-deployment operations during Han Kuang, as Taipei also staged Patriot and Sky Bow air-defense units around riverside parks. Cross-Strait Security: Taiwan’s military drills are framed as countering potential Chinese attack scenarios, with troops using camouflage and perimeter security to protect sensitive systems. China Pressure on Youth Exchanges: Taiwan’s Mainland Affairs Council blocked the China-run “Taiwan Youth e-Home” platform by stopping DNS resolution, citing personal data risks and violations of Cross-Strait Act rules on recruitment and related advertising. Defense Budget Deadlock: Taiwan’s domestically produced drone funding remains stuck in the legislature after competing bills failed to reach consensus, raising the risk of no major drone contracts awarded before 2027. Economy & Prices: Taiwan’s July inflation stayed above the 2% alert threshold for a third straight month, with core CPI up 2.38% and dining-out inflation hitting 3.05%. Tech Supply Chain Pressure: TSMC reportedly has about $1B in finished Apple A20 Pro chips waiting on LPDDR5X memory for packaging, highlighting how AI-driven memory demand can spill into consumer launches. Regional Disruption: Typhoon Dolphin is prompting flight and ferry changes affecting Taiwan’s routes to Okinawa and outlying islands. People-to-People Links: Taiwan’s government-funded scholarships in the Philippines hit a record 147 for 2026-2027, with applications topping 1,000.