BBC News:
When US President Joe Biden recently signed off on a $80m (£64.6m) grant to Taiwan for the purchase of American military equipment, China said it “deplores and opposes” what Washington had done.
To the casual observer it didn’t appear a steep sum. It was less than the cost of a single modern fighter jet. Taiwan already has on order more than $14bn worth of US military equipment. Does a miserly $80m more matter?
While fury is Beijing’s default response to any military support for Taiwan, this time something was different.
The $80m is not a loan. It comes from American taxpayers. For the first time in more than 40 years, America is using its own money to send weapons to a place it officially doesn’t recognise. This is happening under a programme called foreign military finance (FMF).
Since Russia’s invasion of Ukraine last year, FMF has been used to send around $4bn of military aid to Kyiv. It has been used to send billions more to Afghanistan, Iraq, Israel and Egypt and so on. But until now it has only ever been given to countries or organisations recognised by the United Nations. Taiwan is not.
After the US switched diplomatic recognition from Taiwan to China in 1979, it continued to sell weapons to the island under the terms of the Taiwan Relations Act. The key was to sell just enough weapons so Taiwan could defend itself against possible Chinese attack, but not so many that they would destabilise relations between Washington and Beijing. For decades, the US has relied on this so-called strategic ambiguity to do business with China, while remaining Taiwan’s staunchest ally.
But in the last decade the military balance across the Taiwan Strait has tipped dramatically in China’s favour. The old formula no longer works. Washington insists its policy has not changed but, in crucial ways, it has. The US State Department has been quick to deny FMF implies any recognition of Taiwan. But in Taipei it’s apparent that America is redefining its relationship with the island, especially so given the urgency with which Washington is pushing Taiwan to re-arm. And Taiwan, which is outmatched by China, needs the help.
“The US is emphasising the desperate need to improve our military capacity. It is sending a clear message of strategic clarity to Beijing that we stand together,” says Wang Ting-yu, a ruling party legislator with close ties to Taiwan’s President Tsai Ing-wen, and to US Congressional chiefs.
He says the $80m is the tip of what could be a very large iceberg, and notes that in July President Biden used discretionary powers to approve the sale of military services and equipment worth $500m to Taiwan. Mr Wang says Taiwan is preparing to send two battalions of ground troops to the US for training, the first time this has happened since the 1970s.
But the key is the money, the beginning of what, he says, could be up to $10bn over the next five years.
Deals involving military equipment can take up to 10 years, says I-Chung Lai, president of the Prospect Foundation, a Taipei-based think-tank. “But with FMF, the US is sending weapons directly from its own stocks and it’s US money – so we don’t need to go through the whole approval process.”
