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China doesn’t like Biden’s $1.2bn arms sale to Taiwan

While the conflict between Russia and Ukraine seems to be slowly fading away, a new dispute may arise between China and Taiwan.

Nancy Pelosi, the US House Speaker, visited Taiwan at the beginning of August, the first time in 25 years that the US speaker visited the country. This caused tension between the US and China as China fights for its territory with Taiwan.

Biden administration ignores China

The Chinese Communist Party, which has long sworn to reconnect the island with the Chinese mainland, sees Taiwan as a part of China’s territory despite its lack of formal control. However, China had been adamant in its warnings, even telling US President Joe Biden personally that playing with fire would have repercussions. 

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Biden Administration seems to ignore this warning as it proposed a $750 million arms sale to Taiwan right after the trip. New information reveals that they plan to ask Congress for a $1.1 billion arms sale to Taiwan. This would include anti-ship missiles, air-to-air missiles, and other war equipment. 

At the beginning of the week, the State Department formally informed Congress of the deal. Although it gives Taiwan no new military capabilities, Beijing may object since it has claimed that American arms supplies to Taiwan threaten its security and breach the agreements that established diplomatic relations with Washington. 

The US appears unconcerned despite China’s request for them to halt arms sales and military cooperation with Taiwan, and any war would not improve the current poor global economic situation. If something similar as the Russian-Ukraine conflict starts, millions of people would be affected and stock markets could head into another turmoil.

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The deal would be the biggest since President Joe Biden entered the office and the biggest sale since a $2.4 billion contract involving Harpoon missiles in October 2020. Taiwan raised its spending on the military equipment to boost its defense against China. 


As Beijing tries to alter the status quo in the Taiwan Strait, Taiwan warned that it faces serious military challenges from escalating Chinese military activity that is moving closer to the island. 

According to the Ministry of National Defense of the island, Taipei anticipates that the People’s Liberation Army will keep sending warships and jets across the waterway’s median line.

Senior government officials in Taipei said Chinese warships stayed at least 24 nautical miles offshore. However, for how long can that last before the situation escalates?

I got into financial markets by accident in 2012 and started with Forex trading. Later in 2017, I started investing in stocks in cryptocurrencies and began writing articles profess...


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