Description: The United States has further bolstered Taiwan’s defense capabilities reaffirming their strong regional alliance and cooperation. The White House had stated that several assistance programs such as Foreign Military Financing, Presidential Drawdown Authority and International Military Education and Training have been implemented in the cooperation. Further cooperation was expected since Joe Biden’s administration authorized 19 arms sales to Taiwan as well as the regional cooperation with Australia, New Zealand and Japan.
Impact: With the reaffirmation of Taiwan as one of their priorities, the US prioritized the Indo – Pacific geopolitical region as one of their highest priorities in a fairly fluid regional instability. The US support towards Taiwan comes in a time of enhanced trade and industrial war on the global market and could further impact global stock market prices in several industries, as well as elevate defense readiness and regional tensions. Since Taiwan’s dispute with China is seen by many as a global and not regional problem, with China practically invading Taiwan’s territorial waters and sovereignty, political and economic tensions in the region are expected to rise.