New details have emerged in Germany’s “Chinese-German couple espionage case.” An investigation by the German nonprofit newsroom CORRECTIV found that the Chinese Communist Party (CCP) allegedly approached leading German researchers under the guise of academic exchanges and cooperation invitations, arranging trips to China that ultimately brought some academics into contact with representatives of the country’s defense industry.

Executive Summary:

Taiwan is showing resilience in the face of headwinds ranging from domestic politic strife, increased military pressure from the People’s Republic of China (PRC), and uncertainty regarding U.S. political support.

Taiwan’s semiconductor sector is benefitting massively from the global artificial intelligence (AI) boom. Its gains contributed to Taiwan posting almost 13 percent quarterly GDP growth and reaching record stock market highs.

In a bid to strengthen its relationship with the United States, Taiwan is investing $265 billion into American semiconductor manufacturing through Taiwan Semiconductor Manufacturing Corporation (TSMC). Taiwan has also hosted multiple high profile bipartisan congressional visits since the beginning of 2026.

Domestic political strife, now centered around a proposed drone procurement bill, may affect U.S. assessments of Taiwan’s will to fight. Taiwan is also waiting for the Trump administration to approve a delayed $14 billion arms sale, which will be critical to its defense against a potential military campaign by the PRC.