WASHINGTON (Reuters) -The U.S. State Department has approved the potential sale of spare parts for F-16 jets and radars to Taiwan for an estimated $385 million, the Pentagon said on Friday, a day before Taiwan President Lai Ching-te starts a sensitive Pacific trip.

The United States is bound by law to provide Chinese-claimed Taiwan with the means to defend itself despite the lack of formal diplomatic ties between Washington and Taipei, to the constant anger of Beijing.

Democratically governed Taiwan rejects China’s claims of sovereignty.

China has been stepping up military pressure against Taiwan, including two rounds of war games this year, and security sources have told Reuters that Beijing may hold more to coincide with Lai’s tour of the Pacific, which includes stopovers in Hawaii and Guam, a U.S. territory.

The Pentagon’s Defense Security Cooperation Agency said the sale consisted of $320 million in spare parts and support for F-16 fighters and Active Electronically Scanned Array Radars and related equipment. 

The State Department also approved the potential sale to Taiwan of improved mobile subscriber equipment and support for an estimated $65 million, the Pentagon said. The principal contractor for the $65 million sale is General Dynamics (NYSE:).

Taiwan’s defense ministry said it expected the sales to “take effect” within a month and that the equipment will help maintain the F-16 fleet’s readiness and “build up a credible defense force”.

“Taiwan and the United States will continue to strengthen their security partnership and work together to maintain peace and stability in the Taiwan Strait and the Indo-Pacific region,” it said in a statement.

Last month, the United States announced a potential $2 billion arms sale package to Taiwan, including the delivery for the first time to the island of an advanced air defense missile system battle tested in Ukraine.

Lai leaves for Hawaii on Saturday on what is officially a stopover on the way to Marshall Islands, Tuvalu and Palau, three of the 12 countries that still to have formal diplomatic ties with Taipei. He will also stop over in Guam.

Hawaii and Guam are home to major U.S. military bases.

© Reuters. FILE PHOTO: A F-16 fighter jet takes off during a media day of NATO's

China on Friday urged the United States to exercise “utmost caution” in its relations with Taiwan.

The State Department said it saw no justification for what it called a private, routine and unofficial transit by Lai to be used as a pretext for provocation.


Source link

Best Brokers

Unmatched trading fees, generous bonuses, top notch Regulation Frame.

T&Cs Apply

Risk disclosure: All investments involve a degree of risk of some kind. Trading financial derivative products comes with a high risk of losing money rapidly due to leverage.

Top-Tier Regulations. Unmatched Spreads and Commissions. Trading View is available.

T&Cs Apply

Financial Spread Trades and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.7% of retail investor accounts lose money when trading CFDs with this provider.

Modern and Intuitive Interfaces, Solid Regulatory Frame, and excellent Trading Fees.

T&Cs Apply
Risk warning: Trading derivatives is highly speculative, carries an inherent risk of loss and is not suitable for all investors. Before trading, you are strongly advised to read and ensure that you understand the relevant risk disclosures and warnings.

Highly Regulated. Low Spreads and Commissions. Vast Account Options.

T&Cs Apply

Risk Warning: Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment.