Now Taiwan could soon receive a package of one hundred Patriot missiles from the US. The cost approximately eight hundred two million dollars for those let's get closer to the show. We we're joined by Tony Cappaccio, who is a Bloomberg Pentagon reporter. Tony, thanks so much. So this is fascinating because this is brand new hardware hardware. But but the deal is morphed out of a twenty ten sales so it's classified as as not really a new deal. What
what's the significance of all of this. That's a very interesting way to put it. Morphed out of That's a very interesting accurate way to say it. Yeah, this is one way I think they can get away with saying we don't have any new sales planned. But the hardware is pretty interesting. The Taiwan has the Pack three and they's earlier Pack two Patriots. These are what they call hit to kill, with very sophisticated sensors that could they
hit the missile versus they explode next to one. So this new version, it would be up to Taiwan to put in a a sales order for what they call this is a clubsy name, but it's called the Mission Missile Segment Enhancements. Basically, it's the best Patriot missile the US has. It can fire farther, it's fins making more maneuverable,
and it's just got a more powerful motor. So the issue here is selling them on these missiles along with test equipment and very importantly modifications to their current launcher kits launchers basically and then upgraded software. This package of two million dollars, it's a possible sale. I don't need to say this would fall under the threshold of the ten year old contract that had a maximum order of
two point eight one billion dollars. If it was over that threshold, they'd have to say this was a new sale. My understanding is that this the thail and he's a couple of years ago, has signaled a budgeteer of budget interest in doing this, and I gotta think this is gonna move pretty fast after Congress approves it within thirty days.
That yeah, and Tony, the the the geopolitical dynamic of this, because you have in and I went back and actually read your story of of that China had reacted very strongly and and what canceled partnerships with the US, So, I mean, and things are very tense now, so it's not out of the roma possibility they will be a very strong reaction to this as well. There could be. Yeah, I think the cuteness here is that it's not really a new sale the Biden administration can say, but a
modification under an umbrella contract or more morphing. As you said, I gotta think so that they are going to react because this is a new, more powerful missile that can fire longer and farther excuse me longer and maneuver better. So so they're they're they're gonna be so So how I mean, what now? What is the partnership between the US and China militarily? What what could be hurt by this?
What's the gamble? I'm thinking it's not so much hurting our relationships with China as them taking more provocative short term actions like maybe additional missiles launchings or area intrusive aerial demonstrations like they did when Speaker Pelosi visited Taiwan, or you know what this made There may be nothing, Okay, So what are we talking about here in the United States? Does this have to be funded or can this can this you said, move move quickly? Does this? Does Congress
get involved? How does it work? Congresses? They were when what they call the informal stage, notification stage, and they have thirty days to formally approve it. It's basically a pocket veto. If they don't object, it goes through, and then it's in Taiwan's ballpark to come up with a funding request, I mean a sales request to the State Department. Were not giving me things for free, but the process is in motion. Got it all right, Tony? Thank you
for explaining that the process is a little bit complicated. Uh, Tony cappacrio kindagon, of course, out of Bloomberg