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Lai vows to lift defense spending to 3%

The government aims to increase defense spending to at least 3 percent of GDP this year, President William Lai (賴清德) said yesterday, hours after US President Donald Trump again threatened tariffs on Taiwanese semiconductors.

At a news conference in Taipei following his first high-level national security meeting this year, Lai said the government would propose a special budget this year to increase the nation’s defense spending to more than 3 percent of GDP.

“Taiwan must firmly safeguard its national sovereignty, strengthen its resolve for self-defense and bolster its defense capabilities,” he said.

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Philippines and New Zealand in talks for defense pact

The Philippines and New Zealand have begun negotiating an agreement that would allow them to deploy troops on each other’s soil, the two countries said yesterday, as concerns over maritime tensions with China grow.

Manila has been seeking to boost defense ties in the Asia-Pacific region and beyond in the face of China’s growing confidence in asserting its claims over the hot spot South China Sea.

A first round of talks was held in Manila on Thursday last week between the Philippines and New Zealand’s defense departments, they said in a joint statement.

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Newsflash

As Taiwan moves toward finalizing an Economic Cooperation Framework Agreement (ECFA) with China, a US Congressional commission reports a “disturbing trend” by Beijing away from the development of a free market system and toward greater government control of the economy.

“Contrary to its claim of being a market-oriented economy, Beijing continues to comprehensively plan, direct, support and control its economy,” said Carolyn Bartholomew, chairman of the US-China Economic and Security Review Commission.