Taiwan’s drone ambitions are getting a boost from the private sector despite a massive budgetary setback.

A US dronemaker is partnering with a Taiwanese tech firm to build scalable systems for the country’s military, as the rush to augment autonomous defense capabilities intensifies on both sides of the strait.

China dominates the global drone supply chain, spurring Taiwan to build a domestic ecosystem, with the island’s exports to Europe surging in the last two years.

But the industry suffered a serious blow when legislators culled the entire drone production program from its recent budget. Meanwhile, in a rare overseas exhibition, one of China’s largest defense contractors demonstrated its drone manufacturing process, in a potential play for Middle Eastern buyers, SCMP reported.