Defense & U.S. Arms: The U.S. House Armed Services Committee advanced a FY27 defense bill that includes up to US$1 billion for Taiwan, including medical support, training, and joint unmanned systems development. Cross-Strait Gray-Zone: Taiwan said a Chinese coast guard ship and survey vessel carried out a coordinated “provocation” near the Pratas Islands, with Taipei calling it highly provocative. U.S.-China-Taiwan Diplomacy: Trump said the roughly US$14 billion Taiwan arms package is still under review and he plans to discuss it with President Lai. Deterrence Debate: A senior U.S. diplomat in Taipei urged Taiwan to “spend smarter” on drones and unmanned systems after Taiwan’s extra defense budget was only partially approved by parliament. Regional Security Watch: Taiwan reported multiple PLA aircraft and vessels around the island, while maritime patrols intensified after Chinese ships approached key South China Sea islands. Economy & Markets: President Lai said Taiwan wants to turn its capital market into an “Asian Nasdaq” to help global startups raise funds, citing relaxed trading rules and Taiwan’s AI ecosystem. Energy Resilience: Experts urged Taiwan to decentralize and harden its power system, learning from Ukraine’s attacks on energy infrastructure. Local & People: Taipei Zoo received two red pandas from China for the first exchange in over a decade, with a month-long quarantine underway.