Perhaps file this one under the growing file of Politics is Money stories- a U.S. business group head has accused Obama of compromising the security of Taiwan in the interest of promoting a better relationship with China. An interesting accusation, as Obama certainly wants to get closer, well, as close as possible, to the Chinese government- that is essential to the long-term safety and well-being of the United States and the world’s economy. But as the U.S. is historically a supporter of Taiwan’s government, would Obama truly be willing to short Taiwan just to cozy up to China? Or is this essentially a business move by the group leader, trying to use his political clout to get a good deal moving for Taiwan?

Here’s what’s going down:

I expect this kind of thing to come up more and more as the U.S. tries to get closer to the govnermentally distant China. Would the U.S. want anything to do with China if China was not a gigantic economic superpower? No. We would probably be condemning them or treating them like Iran.

But they are huge and they are a major world player, so the game is, sometimes in their court. And one of their land-grabs, controversial for sure, is Taiwan. China considers Taiwan part of China that is attempting to break away (Taiwan essentially governs themselves).

Taiwan is watching "with increased exasperation” according to Rupert Hammond-Chambers president of the U.S.-Taiwan Business Council, which is led by Paul Wolfowitz, former World Bank president and former U.S. deputy secretary of defense.

After many years of advocating arms sales to Taiwan, most recently advocating for them to make the sale of 66 Lockheed Martin F-16C/D fighter jets to add to their fleet of F-16’s. Of course, China is against any kind of weapons or arms sales to Taiwan. It would be like the U.S. being against any kind of nuclear sales to Iran- just NO is the answer.

The Obama administration seems to favor strengthening ties with Taiwan, though, as Hammond-Chambers wrote in a year end report:

"Regrettably, this effort runs smack into a White House that clearly views Taiwan as a barrier to U.S. interests in Asia."

Essentially, the U.S. has been slowing its arms sales, under both Bush and Obama, to Taiwan since 2007, trying to not anger China. China views any arms sales to Taiwan as interference in their domestic issues- sort of as if China sold weapons to California or something.

For its part, Taiwan recently elected President Ma Ying-jeou of the Nationalist Party (KMT), who advocates for friendly relations with China. Still, in many ways the sale or lack of sale of 66 new F-16’s and other modernized weapons to Taiwan is akin to a military victory for China- if Taiwan doesn’t have the weapons to defend themselves, China gains both a military and diplomatic upper hand. The U.S. will not stop selling weapons to Taiwan completely, at least not anytime soon, as they are obligated under the 1979 Taiwan Relations Act to give "defense articles and services" to Taiwan that they need for their self-defense.

We’ll see if the U.S. redefines that treaty, redefines defense articles and services, or can put off the issue further.

Photo Credit: Buddy8d (via Flickr under CCL)