President Lai Ching-te speaks in front of the Presidential Office in Taipei on Saturday, October 10, for Taiwan’s National Day. It’s his third as president. The first one, in 2024, was followed four days later by Joint Sword-2024B, a named PLA exercise around the whole island.

Taipei is braced for something similar. The question worth asking is what form it takes, because the evidence from 2026 points somewhere other than a repeat of 2024.

President Lai Ching-te used a televised interview that aired Friday night to restate one of his administration’s more ambitious economic goals: turning Taiwan’s capital market into the Asian equivalent of the Nasdaq, a place where startups from anywhere in the world come to raise money and plug into the island’s hardware supply chain. He argued Taiwan is better positioned to win that race than South Korea, Japan, Singapore, China or Hong Kong, pointing to the local market’s status as the world’s fifth largest by value, its deep liquidity, and what he called the most comprehensive AI ecosystem on the planet.

The Reuters dispatch landed on the same day as the Taiwan presidential office was still processing the parliamentary vote.

US concerned by Taiwan defence delay 'concession' to China https://t.co/Tc9N9g1P7k https://t.co/Tc9N9g1P7k

— Reuters (@Reuters) May 9, 2026

The facts are straightforward. Taiwan President Lai Ching-te had sought $40 billion in supplementary defence spending to better deter China. After repeated delays by opposition parties, who hold the majority of seats, parliament approved only two-thirds of the money requested—all of it earmarked for US weapons, with domestically developed drones and missiles excluded from the package.

Taiwan’s President Lai Ching-te arrived in Eswatini on Saturday — days late, but there. The visit had been blocked in April when the Seychelles, Mauritius, and Madagascar revoked overflight permits for his presidential aircraft without prior notice. Taiwan’s presidential office attributed the withdrawals to what it called intense economic coercion by Beijing. China’s foreign ministry, for its part, expressed “high appreciation” for the actions and framed them as adherence to the one-China principle.