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Current Affairs

Can direct commercial sales fix Taiwan’s US$20 billion weapons backlog?

US defence industry leaders are pushing for deeper commercial cooperation with Taiwan to strengthen its military capabilities, as the island seeks faster ways to bolster…

By Samantha Johnson / May 29, 2026

US defence industry leaders are pushing for deeper commercial cooperation with Taiwan to strengthen its military capabilities, as the island seeks faster ways to bolster deterrence amid Beijing’s mounting military pressure.

But they cautioned that such business deals could not replace traditional American arms sales regarded as the backbone of Taiwan’s defence.

Speaking at the Taiwan-US Defence Industry Forum in Taipei on Thursday, retired US General Charles Flynn and senior American executives sought to assuage concerns on the island after US President Donald Trump recently described arms sales to Taiwan as a “good negotiating chip” in dealings with Beijing.

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Several American defence contractors said direct commercial sales (DCS) could give Taiwan greater flexibility in acquiring certain military capabilities and in some cases help hasten procurement.

The debate has gained urgency as Taiwan faces a backlog of more than US$20 billion in approved US weapons deliveries.

Peace is a ‘common wish’: Taiwan opposition leader meets Xi Jinping in Beijing in rare visit

Beijing sees Taiwan as part of China to be reunited by force if necessary.

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