Jun 5, 2019 - Economy

U.S. preparing for $2B arms sale to Taiwan: Reports

A US M1A2 SEP Abrams battle tank fires live rounds at the US Army's Rodriguez Live Firing Range in Pocheon,about 15 km south of the demilitarized zone separating the two Koreas, on September 1, 2011.

A US M1A2 SEP Abrams battle tank. Photo: Park Ji-Hwan/AFP/Getty Images

Congress has received notification of a potential $2 billion U.S. sale of tanks and other weapons to Taiwan, Reuters first reported Wednesday, citing 4 sources who spoke on condition of remaining anonymous.

Details: Bloomberg reports the Pentagon and State Department outlined to Congress the deal would include a resupply of anti-air and anti-armor weapons and the first-time sale of the U.S. Army’s the M1A2 tank, described as the "backbone of the armored forces."

Why it matters: Such a sale would likely anger China, which regards the self-ruled Taiwan as a breakaway province. Taiwan has become one of several flashpoints in the U.S.-China relationship, as the trade war shows no signs of abating and negotiations between the 2 countries continue to stall.

The big picture: Acting Defense Secretary Patrick Shanahan said on Saturday the U.S. is prepared to invest billions of dollars in securing stability in the Indo-Pacific region.

Go deeper: The big picture: China's push to erase Taiwan

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