China's newly demonstrated ability to destroy satellites in low orbits raises risks for the U.S. and Japan in intervening in any Chinese attempt to take Taiwan under its military control--but that might not be the real motivation for the Jan. 11 test.

Taiwan's defense ministry wants to lift military spending to 2.85% of gross domestic product this year from 2.32% in 2005 as China ranges an ever-growing number of surface-to-surface missiles against the island. China has now deployed 980 such missiles, of which 100 are cruise missiles and 880 ballistic, Taiwan's ministry says. The build-up has accelerated: there were 540 such missiles in 2003 and 190 in 1996, according to the ministry.

Thai Airways International will scrap ultra-long-haul Airbus A340-500 services to the U.S. as part of a route revamp that could also see it yield ground in Australia to rapidly expanding Emirates. The economic failure of the polar services to Los Angeles and New York casts renewed doubt over the attractiveness of the special A340 and Boeing 777 versions that can fly farther than other commercial aircraft but with fewer seats and correspondingly higher operating costs.