Taiwan's government has cleared a major new drone and defense-industry law, a win for local manufacturers and for buyers looking for chips and drones made outside China.

• The cabinet countersigned the bill passed by lawmakers in late August, putting it into force.
• It sets aside NT$240 billion over six years — NT$40 billion a year — to build up home-grown defense and unmanned vehicle production.
• The ruling DPP says it accepted a version it did not write because defense needs are urgent and every extra day of combat power adds deterrence against China.
• Taipei also wants to show the world that a "non-red" supply chain, free of Chinese parts, can be built on the island.
• The economics ministry will run the program, with the defense ministry handling military purchases, and a new strategy committee is meant to keep sensitive details secret.

Outlook: The fight moves to the annual budget, where the DPP is pressing the opposition-controlled legislature not to hold up the money.