What does Taiwan get from the foreign aid bill and why is the US economy among the biggest winners?

Taiwan President Praises US Congress for Passing Foreign Aid Package

Taiwan’s president, Tsai Ing-wen, has commended the US Congress for passing a comprehensive foreign aid package that includes arms support for Taiwan, despite objections from China.

Overview of the Aid Package

After months of delays and contentious debate, President Joe Biden signed the bill into law on Wednesday. The legislation, which is worth $95 billion, provides aid to Ukraine, Israel, and Taiwan. However, it also contains provisions that have a broad impact on various parts of the Asia-Pacific region, while also allocating billions of dollars for domestic projects in the United States.

Focus on Sustainable Development Goals (SDGs)

• SDG 16: Peace, Justice, and Strong Institutions
• SDG 17: Partnerships for the Goals

US Aid to Counter China

House Republicans have presented the $8.1 billion allocated for the Indo-Pacific as an effort to counter China’s influence and ensure regional deterrence. However, the largest portion of funding is designated for projects within the United States.

Investment in US Submarine-Building Industry

To address delays in shipbuilding projects, $3.3 billion of the aid package will be directed towards the US domestic submarine-building industry.

Submarine Funding and Economic Impact

$1.9 billion is specifically designated for the construction of a Columbia-class submarine, America’s newest class of nuclear-powered submarines. Additionally, $200 million is allocated for a Virginia-class submarine. The majority of this funding will be spent within the United States, benefitting over 16,000 suppliers across all 50 states.

Impact on Indo-Pacific Deterrence

According to Connor Fiddler at the Foreign Policy Research Institute, nearly half of the Indo-Pacific appropriations directly support the submarine industrial base. While this investment enhances deterrence in the Indo-Pacific region, its immediate impact lies in supporting the American economy.

Condition of Congressional Endorsement

The submarine funding was a condition set by Congress for endorsing the Aukus deal between the US, UK, and Australia. It ensures that the US can produce Virginia-class nuclear-powered submarines for Australia without compromising its own capability requirements.

Foreign Military Financing and Strengthening Regional Partners

An additional $2 billion of funding in the aid package will be allocated to the foreign military financing program for Taiwan and other security partners in the Indo-Pacific. These partners are seen as confronting Chinese aggression. The program allows eligible nations to purchase US defense articles, services, and training. Furthermore, $1.9 billion will be provided for defense-related expenses to Taiwan and other regional partners, while $542 million will specifically enhance US military capabilities in the region.

China’s Response

China has criticized the aid package, stating that it pushes Taiwan into a “dangerous situation.” Beijing’s Taiwan Affairs Office argues that the aid violates US commitments to China and sends a wrong signal to pro-independence forces in Taiwan.

Taiwan-US Arms Sales

Despite not having formal diplomatic ties, the United States remains Taiwan’s most important international supporter and arms supplier. Taiwan has recently signed contracts worth billions of dollars with the US for advanced fighter jets, main battle tanks, and rocket systems.

The Associated Press contributed to this report.

SDGs, Targets, and Indicators

1. SDG 16: Peace, Justice, and Strong Institutions

   • Target 16.1: Significantly reduce all forms of violence and related death rates everywhere
   • Indicator: Number of deaths and injuries caused by violence and conflict

2. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries
   • Indicator: Annual growth rate of real GDP per capita

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all
   • Indicator: Proportion of the rural population who live within 2 km of an all-season road

4. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status
   • Indicator: Proportion of people living below 50% of median income, by age, sex, and disability

5. SDG 13: Climate Action

   • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries
   • Indicator: Number of deaths, missing persons, and directly affected persons attributed to disasters per 100,000 population

Table: SDGs, Targets, and Indicators

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Source: theguardian.com

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