The US should amend a law to add Taiwan to the list of “NATO Plus” allies and streamline future arms sales, a US commission said on Tuesday in its annual report to the US Congress.
The recommendation was made in the annual report by the US-China Economic and Security Review Commission (USCC), which contained chapters on US-China economic and trade ties, security relations, and Taiwan and Hong Kong.
In the chapter on Taiwan, the commission urged the US Congress to “amend the Arms Export Control Act of 1976 to include Taiwan on the list of ‘NATO Plus’ recipients,” referring to a designation held by South Korea, Japan, Australia, Israel and New Zealand.
Photo: CNA
Under the Arms Export Control Act, arms sales to NATO Plus countries only have to be approved by Congress if they exceed US$25 million. Arms sales to Taiwan require congressional approval if they surpass US$14 million.
At a congressional hearing, USCC member and former Pentagon official Randall Schriver said Taiwan’s inclusion in NATO Plus would add it to “the most elite category of security assistance partners” and “ease the process of export control review on potential transfers to Taiwan.”
The commission also recommended that Congress create a “Taiwan Allies Fund” that would provide foreign assistance only to countries that have an official diplomatic relationship with Taiwan.
Under the proposed program, “no country could receive more than 15 percent of the appropriated funding each year.”
“Countries that no longer have a diplomatic relationship with Taiwan would immediately be ineligible for this funding,” the commission said.
In a section on Taiwan’s implications for the US, the report said Taiwan “remains a key flashpoint for conflict with China,” particularly as Beijing intensifies pressure on Taipei, raising the risk of a miscalculation.
It also argued that Taiwan faces “complex decisions” about resource allocation, as it looks to simultaneously counter China’s “gray zone” tactics and adopt equipment more appropriate for countering an invasion.
While the US can assist Taiwan in both areas, it also faces challenges in rapidly arming Taiwan because of defense manufacturing limitations and extended delivery timelines, it said.
As a result, “Taiwan is unlikely to be armed to a sufficient degree to deter or counter China from invading on its own, and so it will rely on the United States to provide for its deterrence as the PLA [the Chinese People’s Liberation Army] continues to approach its 2027 and mid-century modernization goals,” the report said.
“Even if it can be deterred from outright invasion, China continues to build the capability to quarantine or blockade the island, which represents a unique challenge for US and Taiwan leaders,” it said.
Although Taiwanese chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has invested in building production facilities in the US, Taiwan still remains “by far the most dominant” in advanced semiconductor production, the commission said.
Any disruption to output on the nation would therefore have “major ramifications for the global economy and — more importantly — US national and economic security,” the report said.
The USCC was created by Congress in 2000 and is required to submit to the Congress an annual report on the national security implications of the bilateral trade and economic relationship between the US and China, and to provide recommendations for legislative and administrative actions.
People can preregister to receive their NT$10,000 (US$325) cash distributed from the central government on Nov. 5 after President William Lai (賴清德) yesterday signed the Special Budget for Strengthening Economic, Social and National Security Resilience, the Executive Yuan told a news conference last night. The special budget, passed by the Legislative Yuan on Friday last week with a cash handout budget of NT$236 billion, was officially submitted to the Executive Yuan and the Presidential Office yesterday afternoon. People can register through the official Web site at https://10000.gov.tw to have the funds deposited into their bank accounts, withdraw the funds at automated teller
PEACE AND STABILITY: Maintaining the cross-strait ‘status quo’ has long been the government’s position, the Ministry of Foreign Affairs said Taiwan is committed to maintaining the cross-strait “status quo” and seeks no escalation of tensions, the Ministry of Foreign Affairs (MOFA) said yesterday, rebutting a Time magazine opinion piece that described President William Lai (賴清德) as a “reckless leader.” The article, titled “The US Must Beware of Taiwan’s Reckless Leader,” was written by Lyle Goldstein, director of the Asia Program at the Washington-based Defense Priorities think tank. Goldstein wrote that Taiwan is “the world’s most dangerous flashpoint” amid ongoing conflicts in the Middle East and Russia’s invasion of Ukraine. He said that the situation in the Taiwan Strait has become less stable
CONCESSION: A Shin Kong official said that the firm was ‘willing to contribute’ to the nation, as the move would enable Nvidia Crop to build its headquarters in Taiwan Shin Kong Life Insurance Co (新光人壽) yesterday said it would relinquish land-use rights, or known as surface rights, for two plots in Taipei’s Beitou District (北投), paving the way for Nvidia Corp to expand its office footprint in Taiwan. The insurer said it made the decision “in the interest of the nation’s greater good” and would not seek compensation from taxpayers for potential future losses, calling the move a gesture to resolve a months-long impasse among the insurer, the Taipei City Government and the US chip giant. “The decision was made on the condition that the Taipei City Government reimburses the related
FRESH LOOK: A committee would gather expert and public input on the themes and visual motifs that would appear on the notes, the central bank governor said The central bank has launched a comprehensive redesign of New Taiwan dollar banknotes to enhance anti-counterfeiting measures, improve accessibility and align the bills with global sustainability standards, Governor Yang Chin-long (楊金龍) told a meeting of the legislature’s Finance Committee yesterday. The overhaul would affect all five denominations — NT$100, NT$200, NT$500, NT$1,000 and NT$2,000 notes — but not coins, Yang said. It would be the first major update to the banknotes in 24 years, as the current series, introduced in 2001, has remained in circulation amid rapid advances in printing technology and security standards. “Updating the notes is essential to safeguard the integrity