Taiwan’s Legislative Yuan passed a six‑year NT$240 billion (US$7.3 billion) budget for unmanned systems on August 27, 2026. The budget will take effect in 2027 and be financed through the annual general government budget, which has faced legislative gridlock since 2024. It creates a National Unmanned Vehicle Industry Development Strategy Special Committee, nominated by the Legislative Yuan and overseen by the Ministry of Economic Affairs, while the Ministry of National Defense handles military procurement. The legislation allows up to NT$40 billion in annual spending, subject to Legislative approval, and requires the Ministry of Economic Affairs to set standards for indigenous systems, manage test sites, and accredit qualified manufacturers. Defense Minister Wellington Koo said the annual cap could delay planned purchases. Taiwan’s 2026 general budget was approved on August 14 after a year‑long delay. The bill funds development of a domestic drone industry to reduce reliance on U.S. arms imports that have experienced shipping delays. On August 27, the Ministry of National Defense announced a NT$26.9 billion contract for 1,554 Altius‑700M loitering munitions and 478 Altius‑600ISR reconnaissance drones from Anduril, part of a December 2025 U.S. arms package funded through a special defense budget. The Altius‑700M can strike targets up to 160 km away, and the Altius‑600ISR provides about 400 km range, exceeding the reach of Taiwan’s planned domestic drones. The PLA Rocket Force issued a notice on August 24 requesting public reports of procurement corruption for its units, indicating concern that corruption could affect readiness for potential conflict, including operations against Taiwan. The notice follows a series of high‑level purges within the PLA that began in 2023 and led to the removal of several senior commanders, including former PLARF heads Li Yuchao, Zhou Yaning, Wei Fenghe, and Wang Houbin, all expelled from the Communist Party. Cross‑strait relations include KMT Vice Chairman Chang Jung‑kung attending a youth exchange organized by the Taiwan Affairs Office, where he referenced the “1992 consensus,” a framework the PRC uses to claim representational legitimacy. The Taiwan Affairs Office director Song Tao presented the event as promoting “national rejuvenation.” The PRC has increased cooperation with the KMT, including a visit by KMT Chair Cheng Li‑wun to Beijing and a meeting with Xi Jinping in April 2026, while using such exchanges to criticize the ruling Democratic Progressive Party. Additional developments feature the PLA’s participation in the “Eagles of Civilization 2026” exercise in Egypt from August 22 to early September, where J‑16 fighter jets were tested against French Rafale aircraft, marking the first public exposure of the J‑16 against a Western‑designed fighter. The PRC Ministry of National Defense described the exercise as a demonstration of diplomatic and military cooperation aimed at regional peace. On August 26, the U.S. Department of Justice seized domains linked to the PRC‑state‑sponsored hacking group QTFY, which targeted U.S. government agencies and infrastructure, rendering the domains inoperable. The Justice Department said QTFY, acting on behalf of the Ministry of State Security and the PLA, used platforms QScan and QTRouter to compromise Internet‑of‑Things devices. China’s Foreign Ministry denied the accusations on August 27. U.S. Treasury Secretary Scott Bessent announced on August 24 that secondary sanctions were imposed on 60 entities, including several PRC and Hong Kong firms, targeting Iran’s trade partners. The sanctions aim to isolate Iran economically and limit its war‑related financing, though they are not expected to affect major PRC financial institutions. China’s Ministry of Commerce implemented an anti‑sanctions law on May 2, prohibiting compliance with U.S. sanctions on five Chinese oil refineries that import Iranian crude, of which China is the largest consumer. Indian and Chinese officials held talks in Beijing on August 25, agreeing to an eight‑point consensus to manage border disputes along the Line of Actual Control and to schedule follow‑up meetings in September 2026 and 2027. Chinese President Xi Jinping is expected to attend the BRICS summit in New Delhi on September 12‑13, marking his first visit to India in seven years. The measures reflect Taiwan’s effort to strengthen self‑defense amid regional tensions, while the PLA’s anti‑corruption campaign underscores broader strategic anxieties about future conflict.