Taiwan’s government announced Thursday plans to spend around $18 billion (NT$550 billion) to strengthen the island’s resilience, including support for industries hit by U.S. tariffs and bolstering its military in the face of Chinese threats, AFP reported.

The government said the funds will be used to aid sectors affected by the 20% tariffs imposed by Washington, provide cash subsidies to citizens, and reinforce defense capabilities.

While the budget proposal has been approved by the cabinet, it must still pass the opposition-controlled parliament before taking effect.

The move comes as Taiwan grapples with economic pressures and rising geopolitical tensions with Beijing, which claims the island as its territory.