TAIPEI—Taiwan announced a more modest pace in defence spending for next year on Aug. 26, but the budget will include $1.44 billion for new fighter jets, as the island bolsters its forces in the face of increased pressure from Beijing. China has stepped up its military activity near Taiwan, including holding assault drills last week near the island, which it regards as Chinese territory to be brought under Beijing’s control, by force if necessary. President Tsai Ing-wen’s cabinet is proposing military spending of $16.89 billion for the year starting in January, up from this year’s budget of $16.27 billion, the government said in a statement. That number includes $1.44 billion for new fighter jets, although not specified by the government, likely referring to F-16s. The United States in 2019 approved an $8 billion sale of F-16 fighter jets to Taiwan, a deal that would bring the island’s total to more …