US awards $62 billion contract to Lockheed Martin to arm Taiwan amid tensions with China

American establishment Lockheed Martin Corp was awarded a USD 62 Billion, ten-year contract for the production of F-16 Foreign Military Sale (FMS) aircraft. 

"The contract, which was released by the US Department of Defense on Friday, does not mention the country where the sales of the latest F-16V jets are aimed at. The pundits are sure that they are directed towards Taiwan, following the deal to procure 66 such fighter jets which had received a green signal by the Trump administration in 2019," said a report by the EurAsian Times. 

"The ten-year, indefinite-delivery/indefinite-quantity(IDIQ), fixed-price-incentive contract for the production of the F-16 aircraft requires 100 percent partner nations. It is expected that the contract would meet its objectives till 31 December 2026," the report added. 

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Initially, 90 aircraft have been ordered, of which Taiwan would be receiving 66 and Morocco 24. As per the report, the deal of F-16s to Taiwan had been completed and delivered in stages till 2026, which would coincide with the date they had to deliver. 

What happens to Washington's ties with Beijing?

The step would likely cause agitation with Beijing, since the issue has come up at a moment when the relations between the US and China are going through a sour phase, due to multiple issues such as Beijing's claim of territory in the South China Sea.

The ties between the two countries had further worsened after Alex Azar, the US secretary of Health and Human Services had visited Taiwan. 

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The visit of the secretary Azar was the highest level of the visit by a US cabinet official to Taiwan in the past 40 years when the former gave official recognition to China and established diplomatic relations with them. 

The report by the EurAsian Times, further added, "that the contract that was awarded to Lockheed Martin could probably allow Republic of China (ROC) Taiwan to procure latest F-16 Vipers under the continuous process, instead of waiting from the Washington DC government, which is slightly less friendly."

The purchase is probably first of its kind since 1992, that the jets have been sold to Taiwan. Beijing still claims the former to be a part of it and the use of force against the island nation has not been renounced as yet.

"The island nation was also, the first to support New Delhi in its clash with the Galwan valley in Ladakh," said the report. 

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(With inputs from ANI)