China
2025.12.28 18:00 GMT+8

Record U.S. arms sales to Taiwan risk hollowing out the island's economy: Experts

Updated 2025.12.28 18:00 GMT+8
CGTN

A HIMARS rocket is launched during a demonstration for U.S. President Donald Trump at Fort Bragg army base, North Carolina, the United States, June 10, 2025. /VCG

On December 18, the United States announced arms sales to China's Taiwan region worth up to $11.1 billion, marking the largest package of its kind in history. Experts say the unprecedented scale of the deal reflects Washington's efforts to use Taiwan as a strategic tool to contain China while extracting maximum economic and geopolitical value from the island ahead of its eventual reunification with the Chinese mainland.

They argue that the arms sales constitute a serious interference in China's internal affairs and violate the one-China principle and the three China-U.S. joint communiques. As the Chinese mainland's military capabilities continue to strengthen, analysts say the U.S. is accelerating arms transfers to Taiwan even as its willingness to directly defend the island shows clear signs of diminishing.

U.S. arms sales seek to drain Taiwan resources

Military commentator Shao Yongling noted that the weapons are primarily designed for anti-landing operations. This, she said, suggests that the likelihood of the U.S. directly sending troops to defend Taiwan is diminishing. Instead, Washington appears intent on arming the island to raise the cost of reunification for the Chinese mainland.

Shao added that as the mainland's overall strength – particularly that of the People's Liberation Army (PLA) – continues to grow, the U.S. is preparing for the possibility of abandoning Taiwan. Before doing so, she argued, Washington seeks to reap enormous profits from arms sales, further draining Taiwan's resources.

China has announced a decision to impose countermeasures against 20 U.S. military-related companies and 10 senior executives in response to the U.S. arms sales to Taiwan. The Chinese Foreign Ministry stated on Friday that the Taiwan question lies at the very core of China's national interests and represents the first red line that must not be crossed in China-U.S. relations.

Doubts and backlash rise

The massive purchase has also drawn skepticism on the island. China Times, a newspaper in Taiwan, noted that an unusual aspect of the deal is that Washington notified the U.S. Congress before the Taiwan region's budget approval process was completed. The report quoted an anonymous retired military officer of Taiwan as saying that ongoing controversies surrounding U.S. arms sales have already hurt Washington's image among the Taiwan public. The sudden announcement of such a large deal reinforces perceptions that "the U.S. is forcing Taiwan to buy."

Chen Guiqing, a researcher at the Chinese Academy of Social Sciences' Institute of Taiwan Studies, said the core concern on the island lies in the exorbitant costs, which risk hollowing out Taiwan's economy. He argued that the arms sales are futile, reducing Taiwan to a pawn in U.S. strategic calculations while the island itself ultimately bears the consequences. Such massive military spending, Chen warned, will crowd out funds for economic development, social welfare and education, while exacerbating inequality and social tensions.

Chang Ching, a research fellow at the Taiwan-based Society for Strategic Studies, was quoted by Riyue Tantian – a social media account affiliated with China Media Group – as saying that many residents in Taiwan have expressed resentment over the island's endless military spending. He added that even with such a large procurement, it would be impossible to form a "deterrence" against the Chinese mainland.

Military analyst Du Wenlong added that U.S. arms sales have not altered the cross-Strait situation. Instead, they have clarified the PLA's operational priorities, prompting more targeted capability enhancements. "The stronger the arms sales push, the stronger the PLA's ability to respond," he said.

Public outrage and impeachment calls intensify

Amid growing public backlash, Taiwan's Kuomintang (KMT) party and the Taiwan People's Party have jointly proposed impeachment motions against regional leader Lai Ching-te and Cho Jung-tai, chief of the island's executive body, accusing the authorities of defying mainstream public opinion and selling out the island's interests.

In recent days, the movement to impeach Lai has gained massive momentum in Taiwan. An online petition calling for Lai's impeachment launched on the island has already garnered participation from more than 8 million residents, causing the website to crash multiple times due to traffic overload, according to Riyue Tantian.

In an op-ed published in Taiwan's United Daily News, Wang Chih-hsiung, a professor at the University of Illinois Chicago, argued that since taking office, Lai has repeatedly stoked a sense of impending war through agitative rhetoric and budget decisions, placing Taiwan in a "quasi-war" state. Wang wrote that arms purchases by the Taiwan authorities are not only exorbitantly priced but also lack transparency in their procurement process, creating fertile ground for corruption.

He further questioned whether costly yet difficult-to-maintain systems, symbolic but insufficient quantities of weapons and equipment mismatched to real combat scenarios, can truly enhance Taiwan's defense capabilities. Wang said that Lai Ching-te's U.S. arms purchases are meant to signal loyalty to Washington abroad and show toughness toward the Chinese mainland at home, while the true burden falls on young people and taxpayers with no voice in the decision.

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