Chinese Live-Fire Exercises in Taiwan Strait – July 23, 2026
China's military is conducting a two-day live-fire exercise in the Taiwan Strait following increased incursions near Taiwan's waters and airspace. South China Sea tensions simmer at the Manila ASEAN summit as delegations voice concerns over China's actions. And New Zealand and Papua New Guinea sign a defense cooperation agreement amid growing Chinese influence in the Pacific. Plus: - The US House passes a record US$1.15 trillion defense bill. - Funding for Taiwan's "democratic drone supply chain" plans hangs in the balance with lawmakers in deadlock. - Taiwan braces for a fresh 10% US tariff as the previous round of global trade levies expires. - AMD plans to invest up to US$5 billion in Anthropic as part of a strategic partnership to challenge Nvidia's AI dominance. - AI-powered dolls provide companionship and health monitoring for older adults in Korea.
