TAIPEI (Reuters) - There is no new "stage of talks" with the United States at the moment for arms sales, Taiwan's government said on Monday (NASDAQ:MNDY), as the island considers how best to respond to U.S. President-elect Donald Trump's previous demands that Taipei pay for protection.
Trump, who won a second term as president last week, unnerved democratically governed Taiwan, which is claimed by China, by saying it should pay the U.S. for its defence and that it had taken away semiconductor business from America.
Trump has not elaborated on what he means by Taiwan having to pay for its protection, but it could mean Taipei takes the demand seriously with large new arms deals early in his administration, say people familiar with government thinking.
Taiwan's presidential office, in a statement responding to what it said were media reports that the government planned a large arms purchase from the United States, said in the face of increasing Chinese military threats, Taiwan and its neighbours have continued to strengthen their defence deterrence.
This "demonstrates their determination to defend themselves on their own", it said.
"There has been a period of consolidation and discussion between Taiwan and the United States on military needs, but there is no new stage of discussion at this time," the presidency added, without elaborating.
Taiwan, which rejects China's sovereignty claims, has complained of a backlog worth some $20 billion of weapons it has previously ordered from the United States.
The United States is Taiwan's most important international backer and arms supplier even in the absence of formal diplomatic ties, but there is no defence treaty, unlike in the case of Japan and South Korea.