The US Department of State has granted approval for a potential sale of infrared search and track systems for F-16 fighter jets, along with other equipment, to Taiwan. This move, with a maximum potential value of $500 million, has been confirmed by the Pentagon.

The statement claimed that this proposed sale would not disrupt the fundamental military equilibrium in the region. However, this decision could potentially cause tensions with Beijing, as China has persistently urged the US, Taiwan's primary arms provider, to cease weapon sales to the island nation.

The contract's principal contractor will be Lockheed Martin Corp, the manufacturer of the F-16 fighter jets. President Tsai Ing-wen of Taiwan recently announced an anticipated 3.5% year-on-year increase in military expenditure, aiming to enhance defense capabilities.

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It's important to note that the $500 million figure represents the maximum potential value of the contract, and the actual value is expected to be lower.

Last month, the United States unveiled a weapons aid package for Taiwan valued at up to $345 million. It should be highlighted that while approval from the State Department has been received, the notification doesn't confirm the signing of a contract or the conclusion of negotiations.

Relations between the world's two largest economies have deteriorated rapidly in the past years. The trade war on China, which was launched during former US President Donald Trump's term, was stretched by Biden's administration to include a military escalation against Beijing in the South China Sea, including violating the One China policy and deepening relations with Taiwan.

The conflict between the two countries also raised concerns over a possible military clash that might lead to an all-out world war.

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