US-Taiwan Business Council Supports USD 2 Billion Arms Package

The US-Taiwan Business Council endorsed a proposed USD 2 billion arms deal from the United States to Taiwan, calling it “an important development.” This move, reported by the Taipei Times, aims to strengthen defense ties between Washington and Taipei.

Key Details of the Arms Package

The USD 2 billion deal includes USD 1.16 billion for missile systems and USD 828 million for radar systems. Notably, Taiwan will receive three National Advanced Surface-to-Air Missile Systems (NASAMS) for the first time. This acquisition places Taiwan alongside Australia and Indonesia as the only regional nations with these systems.

Milestone for Taiwan’s Defense

Anonymous US defense officials called this a milestone in strengthening Taiwan’s defenses. Taiwan’s Ministry of Foreign Affairs praised NASAMS as “proven,” citing its successful use in Ukraine. The radar systems—AN/TPS-77 and AN/TPS-78—are expected to significantly enhance Taiwan’s air-defense capabilities, according to Taipei Times.

Comments from the US-Taiwan Business Council

Rupert Hammond-Chambers, President of the US-Taiwan Business Council, stated, “This package serves as a significant step forward in the modernisation of Taiwan’s air-defence architecture.” He added that this move reflects a “significant broadening” of the Biden administration’s approach to Taiwan’s defense.

Strengthening Maritime and Aerial Surveillance

Hammond-Chambers highlighted the radar systems’ critical role in improving Taiwan’s surveillance of maritime and aerial regions. These systems will bolster Taiwan’s defense against “gray zone” tactics—coercive military activities that fall short of open conflict, often employed by China.

Integration with Existing Defense Systems

The NASAMS will integrate with Taiwan’s existing Patriot-III and Tien-Kung III missile systems. Hammond-Chambers advised Taiwan’s military to improve readiness by securing ample ammunition and missile supplies to address potential threats.