Review Ongoing for Taiwan Arms Deal Impacting Defense Market Prospects

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U.S. Secretary of State Marco Rubio has confirmed that the proposed US$14 billion arms deal with Taiwan is not halted but is currently undergoing a review typical of the administrative process. Addressing the U.S. Senate, Rubio clarified misconceptions about the package being “paused,” stating that the evaluation process is standard given the package’s substantial size and its implications for U.S. defense production capabilities.

The arms deal, which was thrust into the spotlight, faced scrutiny after President Donald Trump reportedly considered it as a negotiating lever in talks with Chinese President Xi Jinping. This was further complicated by remarks from a senior U.S. defense official, who indicated that some weapon transfers were being reassessed to ensure the U.S. maintains sufficient military reserves.

Rubio pointed out that in December, the U.S. authorized an arms sale to Taiwan valued at approximately US$11 billion, marking it as the largest in the nation’s history. He recalled that China strongly objected to this decision, responding by increasing military maneuvers near Taiwan. Despite these tensions, Rubio assured that U.S. policy towards Taiwan remains consistent and that decisions on arms sales to Taiwan are made independently, without consulting Beijing.

The Secretary of State underscored the necessity of preserving stability and the existing conditions across the Taiwan Strait. Although the US$14 billion package remains under consideration, no definitive conclusion has been reached, and discussions continue as part of the normal procedural review.

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