Taiwan plans to increase its defence budget against China's growing effectiveness in the region. Taiwan wants to increase its defence budget by $1.4 billion in 2021, and wants to secure its national security. Taiwan, which wants to focus on asymmetric capabilities, is on the agenda to buy sea mines and cruise missiles for coastal defence spurts used against amphibious platforms to respond to a possible Chinese attack.

The U.S. and Taiwan had previously agreed on the recertification of Lockheed Martin-produced Patriot Advanced Capability-3 (PAC-3) air defence systems.

China then took a new step as part of its “decision to impose sanctions on countries and companies selling arms to Taiwan”, announcing that they had decided to impose sanctions on US-based company Lockheed Martin.