skip to main content

US Senate committee approves proposed Taiwan policy law

Taiwan's total military expenditure − including its core defence budget − is forecast by Janes to grow strongly in the next few years. (Janes Defence Budgets)

The US Senate Committee on Foreign Relations approved on 14 September proposed legislation that would reinforce US military support to Taiwan.

The proposed legislation – the Taiwan Policy Act of 2022 – includes provisions to extend military funding to the island, fast-track military sales, and impose sanctions on Beijing in the event of conflict.

The committee said the proposed law is intended to “maintain stable cross-strait deterrence as China expands its campaign to undermine the status quo”.

To become a legislation, it requires approval by the full Senate and House of Representatives and be signed by US President Joe Biden.

In its text, the proposed law outlines a military financing programme for Taiwan that would be worth USD4.5 billion between 2023 and 2026.

This funding, said the law, would support procurement and training and would be in addition to a new USD2 billion loan facility for Taiwan's military acquisitions.

Under existing US policy, Taiwan is not a recipient of US Foreign Military Financing (FMF). The island funds its US procurements, which progress through the US Foreign Military Sales (FMS) programme, from its national defence budget. Taiwan's core defence budget was announced by the island in August at TWD415.1 billion (USD13.7 billion). However, the core budget is supplemented by special funds and other allocations for procurement and other activities.

In addition to military financing and loans, the proposed law outlines a five-year plan to prioritise excess defence article (EDA) transfers to Taiwan. The US EDA programme provides allies with equipment no longer needed by the US military.

Looking to read the full article?

Gain unlimited access to Janes news and more...