Thursday, December 24, 2009

Raytheon Missiles to Taiwan

U.S. defense company, Raytheon, has been awarded a $1.1 billion contract for supplying Patriot Air and MDS to Taiwan. As this Taipei Times article states, it's been a long and drawn out process (as with all other arms procurements between Taiwan and the U.S. have been), taking 14 months from when President George W. Bush first gave the go ahead to this sale.

As I mentioned in a post on my Facebook, arms sales are good for everyone- that is everyone except China, which is good in my books. Arms sales will give Taiwan more leverage in negotiating with China, because the only negotiation China truly knows is with a big stick. So how can Taiwan negotiate on an even playing field if it has a twig? Furthermore, procurement from the U.S. will help U.S. defense companies, and in turn, help or at least maintain job growth within this sector. Boeing, Lockheed Martin, Northrop, Raytheon, L-3, etc, all these companies can and may be helped by sales to Taiwan.

Last but not least, sales to Taiwan are more of a sign of commitment by the U.S. that they will continue to stand by Taiwan, for now. And that's really the best we can hope for.

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