Tsai will strengthen Taiwan's defence capabilities
Subject Taiwan's defence policy. Significance Taiwan's new president, Tsai Ing-wen, has signalled a major shift in national defence policy. She aims to boost the overall defence budget to 3% of GDP (from 2% currently) and strengthen the domestic arms industry. Tsai hails from the Democratic Progressive Party (DPP), which traditionally favours permanent de jure independence from mainland China. Impacts Tsai will tread carefully on sensitive sovereignty issues, trying to avoid provoking China even while raising defence spending. Chinese pressure will constrain Taiwan's ability to secure investment and cooperation on defence projects (except from the United States). Washington will press Taiwan for higher defence budgets and offer access to advanced technologies and weapons. The military balance in the Taiwan Strait will shift further in China's favour. Taiwan will find more support in Washington and Tokyo for inclusion in regional defence architecture.