Taiwan says it is in ongoing talks with US on arms sales

• Taiwan has a significant weapons backlog, including a 2019 order for 66 Lockheed Martin F-16V fighters with advanced avionics to counter China's J-20 stealth fighters
• The first two F-16Vs are currently in Hawaii awaiting delivery, with production reaching a stage where delivery is possible despite prior delays
• China has repeatedly called for an end to US arms sales to Taiwan, which the US is bound to support under the 1979 Taiwan Relations Act

Summary: Taiwan-US Arms Sales Talks Continue Amid Policy Uncertainty

Taiwan's Defence Minister Wellington Koo confirmed ongoing discussions with the United States regarding arms sales, following reassurances that US policy toward Taiwan remains unchanged after the recent Washington summit between Presidents Trump and Xi Jinping.

Key Developments:

The US maintains its position as Taiwan's primary weapons supplier and international supporter, despite lacking formal diplomatic ties. In May 2025, President Trump announced he was keeping approximately $14 billion in arms sales in abeyance following a Beijing trip. However, after meeting President Xi last week, Trump indicated only that the Chinese leader "understands his position on Taiwan."

Arms Sales Status:

Minister Koo stated Taiwan has received "repeated explanations" from Washington that policy has not changed and confirmed "continuous discussions" on military sales cases, with no change notifications received to date. Taiwan faces a significant backlog of previously ordered weapons awaiting delivery.

F-16V Fighter Delay:

A major bottleneck involves a 2019 order for 66 Lockheed Martin F-16V fighters equipped with advanced avionics and radar systems designed to counter China's J-20 stealth fighters. Taiwan media reports indicate the first two F-16Vs are currently in Hawaii awaiting delivery. While Koo confirmed production has reached delivery stage, he noted "compensation measures" are involved due to delays but declined to specify delivery schedules.

Market Implications:

The uncertainty affects Lockheed Martin (LMT), the primary contractor, and signals continued geopolitical tension in the Taiwan Strait. The US remains bound by the 1979 Taiwan Relations Act to provide Taiwan defensive capabilities, while China's government opposes all arms sales to the island it claims as its territory.