US-Taiwan $330 million arms deal set to escalate trade war spat amid claims of ‘a knife’ to China’s neck

09/25/2018

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Michael Selby-Green | Business Insider

The United States has approved a $330 million arms deal with China’s neighbor Taiwan, in a move set to further increase tensions between Beijing and Washington amidst the escalating trade war,The South China Morning Post reported.

The news comes as China said on Tuesday that it was impossible to hold trade talks with the US while Washington’s tariffs are like “a knife” to China’s neck, following a fresh $200 billion of tariffs on China, and US President Donald Trump’s threat of $267 billion more.

The proposed arms deal which was announced on Tuesday by the Pentagon and will be put before the US Congress would include parts for F16 and F5 fighter jets, C130 cargo planes, Taiwan’s Indigenous Defence Fighter, and other aircraft systems.

The sale will contribute to the “foreign policy and national security of the United States,” the Pentagon’s Defense Security Cooperation Agency said, adding that Taiwan “continues to be an important force for political stability, military balance and economic progress in the region.”

 

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