US Approves Record $11.15 Billion Arms Deal for Taiwan Amid China Tensions
Economy
C
CNBC Awaaz18-12-2025, 12:23

US Approves Record $11.15 Billion Arms Deal for Taiwan Amid China Tensions

  • The US approved its largest ever arms deal for Taiwan, valued at $11.15 billion (approx 98,000 crore rupees).
  • The package includes HIMARS rocket artillery, ATACMS missiles, M109A7 howitzers, Javelin, TOW anti-tank missiles, and drone systems.
  • Taiwan's President Lai Ching-te aims for high combat readiness by 2027, warning of potential Chinese takeover.
  • China reacted sharply, calling Taiwan's independence efforts "doomed to fail" and conducting military exercises.
  • The deal, under the 1979 Taiwan Relations Act, signals shifting power dynamics and potential for major conflict.

Why It Matters: US's record arms deal for Taiwan escalates Indo-Pacific tensions, fueling China's anger and conflict fears.

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