Draw your own conclusions, but the Obama administration (in another continuation of a Bush administration policy) has decided that Taiwan will not be allowed to purchase 66 shovel-ready F-16C/Ds. In lieu of this, upgrades to existing Taiwanese F-16s will be offered.
Will the no-sale hold?
More than a few TADTE [Taipei Aerospace and Defense Technology Exhibition] attendees said the Obama administration might reverse the decision as the 2012 presidential election approaches and political pressure for new jobs builds.
And just what are the U.S. economic implication?
A June report by the Perryman Group, a Texas-based economic and financial analysis firm, estimated that Taiwan’s F-16C/D program would create more than 16,000 jobs and almost $768 million in U.S. federal tax revenue. Much of that tax revenue and new jobs would go to election battleground states: California, Connecticut, Florida, Maryland, Ohio, Texas and Utah.
Is this an appeasement effort to China? Ponder the following:
…China holds about 8 percent of U.S. debt, the largest block in foreign hands.
China has called the sale a "red line." A recent editorial in the state-controlled People’s Daily called for the use of a "financial weapon" against the U.S. if new F-16s were released.
Is it possible the no-sale might have been made regardless of China’s position on the topic? No.