On Taiwan's National Day, President Lai Ching-te pledged to raise defense spending to "deter war" and urged Indo-Pacific democracies to unite in defending peace, accusing China of unilaterally changing the status quo around the island, according to Al Jazeera and Kyodo News.

The speech followed last week's Trump-Xi summit, per Bloomberg, while Washington separately called recent Chinese military activity near Taiwan "deeply destabilising," according to Reuters.

Why it matters: a summit meant to cool tensions hasn't stopped either side escalating over Taiwan — raising the odds the next flashpoint in the US-China rivalry plays out around the island.