US Pentagon’s trillion-dollar budget surge puts Taiwan defense firms at crossroads

The US is charting a new course for defense spending, with President Donald Trump’s administration proposing a 13% increase that would push the Pentagon’s 2026 budget to an unprecedented US$1.01 trillion. While funding for medical research and education faces deep cuts, the White House is prioritizing investments to strengthen national security, deter Chinese aggression in the Indo-Pacific, and revitalize America’s defense industrial base. The move aligns with a global trend of escalating military budgets, as nations respond to heightened geopolitical tensions.

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The EU wanted full electrification—China delivered a workaround

In early 2025, the European Union made a decisive pivot in its electric vehicle policy, throwing full support behind battery electric vehicles (BEVs) while pulling back on plug-in hybrid electric vehicles (PHEVs). The aim was clear: accelerate decarbonization by backing fully electric solutions and phasing out what many saw as transitional technologies with questionable emissions benefits.

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