US Reports $44.8 Billion in Taiwan Arms Sales over 20 Years

According to one of the latest reports from the Congressional Research Service, the U.S. government has notified Congress that a total of $44.8 billion worth of defense articles and services have been sold to Taiwan since 1990. Taiwan is ranked as one of the top purchasers of U.S. arms.

The 61-page CRS report written by researcher Shirley A. Kan was issued at the end of July. The report reviews in detail the course of U.S. arms sales to Taiwan from the 1990s to date and expounds on the internal disputes surrounding these events. Additionally, the report lists the articles and prices of U.S. arms sold to Taiwan.

Since 1990, four U.S. presidents have been in office. According to the U.S. report on the inventory of Taiwan arms sales, the highest number of military arms sold to Taiwan in this period was during the eight years of the George W. Bush administration, with sales amounting to $15.6 billion. Sales peaked within the first term of the Obama administration when $12.2 billion worth of weapons were sold. The largest transaction took place in 1992 during the George H. W. Bush administration and resulted in Taiwan’s purchase of 150 F-16 A/B fighters priced at $5.8 billion. The next largest transaction was on Sept. 21, 2011 when the Obama administration announced that it would supply Taiwan with 145 upgraded F-16 A/B fighters priced at $5.3 billion. The Clinton administration reported $8.7 billion of Taiwanese arms sales over eight years.

Throughout the course of U.S. arms transfers to Taiwan dating from 1990 to 2012, the sales of military items have been declared every year except for three: 2006, 2009 and 2012. Taiwan arms sales were particularly robust during election years and inaugural periods. For example, during the 1992 elections between George H.W. Bush and Bill Clinton, the Bush Sr. administration announced sales reaching $7.7 billion, establishing the record of highest number of sales in a single year. In 2008, also an election year, the George W. Bush administration announced nearly $6.5 billion in Taiwan arms sales. In 2009, during the beginning of Obama’s presidency, the administration restricted its military transactions with Taiwan in an effort to improve relations with China. As a result, sales were not reported that year. However, $5.9 billion and $6.4 billion of Taiwan arms sales were announced respectively for 2010 and 2011, with sales strength far exceeding what the preceding office reported.

Over the past 23 years, the U.S. has reported arms sales to Taiwan for 20 years, 13 of which the value of sales approached or exceeded $1 billion. Although the three years of no reported sales were within the most recent 10 years, each reported sale since 2007 has been greater than the last. For example, six large transactions were announced together on Oct. 3, 2008. Included in the deal were 330 PAC-3 missiles and 30 Apache helicopters valued at close to $6.5 billion. Then, on Jan. 29, 2010, five major transactions were announced, including 114 PAC-3 missiles and 60 Black Hawk helicopters, valued at nearly $6.4 billion. On Sept. 21, 2011, three deals valued at approximately $5.9 billion were announced, including the sale of 145 F-16 A/B fighters.

While the U.S. and Taiwan are not bound by a defense treaty or diplomatic relations, the amount of U.S. arms sales to Taiwan has been significant. According to the report, Taiwan remains one of the largest recipients of U.S. arms in the world. Between 2004 and 2007, $4.3 billion worth of purchases were made, placing Taiwan as the fourth largest recipient, falling shortly behind Israel, Egypt and Saudi Arabia. Between 2008 and 2011, Taiwan ranked the fifth largest after Saudi Arabia, Egypt, Israel and Australia, with purchases worth $2.9 billion. In 2011 alone, $8 billion worth of sales were made, placing Taiwan as eighth largest in rank.

The report indicates that in 1996, after the crisis in the Taiwan Strait, the Pentagon expanded military relations between the U.S. and Taiwan to a degree unprecedented since before 1979. As U.S. concern over Taiwan’s self-defense grew, exchanges in defense and security affairs between the two parties expanded. The Pentagon has carried out assessments of Taiwan’s defense needs since 1997. In 2009, a report from the Pentagon revealed that the People’s Liberation Army had gained the upper hand in the Taiwan Strait. The U.S. hoped that Taiwan would strengthen the quality of their army. Conversations on how to improve the quality of Taiwan’s army merged with discussions on using innovation and asymmetric warfare to maintain deterrence. Although both the George W. Bush and the Obama administrations have reported numerous arms sales, none of these sales have included submarines. From 2006, Taiwan has repeatedly expressed interest in purchasing F-16 C/D fighters, but neither the Bush nor Obama administration has taken action. During this process, some members of Congress have expressed dissatisfaction and have insisted that the U.S. have a greater role in Taiwan arms sales.

The report points out that a persistent problem with U.S. arms sales to Taiwan is that this military aid may lead to increased conflict between the U.S. and China.

Will it be in the interest of the U.S. to have more conversations with Taiwan and to have more procedures entrusting each other with military issues? Is the strategy of the U.S. regarding Taiwan’s security limited to the Taiwan Strait or does it extend to boundaries beyond the Pacific Ocean to affect the entire world? These problems are constantly debated in the U.S.

In addition, the U.S. arms industry is concerned that the U.S. government’s commitment to the Taiwan Relations Act is not strong enough. Additionally, the U.S. is worried that Taiwan is not invested enough in its defense. During the Taiwan army’s transition from a voluntary enrollment system to a military recruitment system, will the army be depleted due to insufficient resources and uncommitted leadership?