TAIPEI (TVBS News) — The United States-China Economic and Security Review Commission (USCC, 美中經濟暨安全檢討委員會) submitted its annual report to Congress on Tuesday (Nov. 19), recommending an amendment to the Arms Export Control Act, granting Taiwan the same arms sales status as NATO Plus countries. The proposal aims to strengthen Taiwan's defense capabilities amid rising tensions with China.
Randall Schriver, a USCC commissioner, noted that including Taiwan in NATO Plus would simplify export controls and position Taiwan as one of America's most crucial security assistance partners. The report also proposed establishing a Taiwan Allies Fund to provide foreign aid to countries with formal diplomatic ties to Taiwan, capping individual allocations at 15% annually.
The report highlighted Taiwan's strategic importance, as it remains a potential flashpoint in U.S.-China conflicts. It pointed out that Chinese leaders continue to pursue unification, viewing the election of President Lai Ching-te (賴清德) as a potential vulnerability. The Lai administration's asymmetric defense strategy faces challenges from increased Chinese pressure, necessitating complex resource allocation decisions, it indicated.
The report explained that the U.S. can support Taiwan against China's gray zone tactics by supplying materials for asymmetric strategies, although rapid armament remains challenging due to U.S. defense industry constraints. These limitations mean Taiwan must rely on U.S. deterrence to counter potential Chinese aggression, with China aiming to develop invasion capabilities by 2027.
The report added that Taiwan's exports to the U.S. have surged since late 2023, driven by demand for AI and high-performance computing chips. Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) is constructing three semiconductor foundries in Arizona, underscoring Taiwan's pivotal role in advanced semiconductor production. Disruptions in this sector could significantly impact global and U.S. economic security, it concluded.
