Trump says Taiwan must pay the US for defence against China - 'We're no different than an insurance company'

Former President Donald Trump demanded the self-governed island of Taiwan pay for U.S. protection, dodged the question of whether he would defend the island from Beijing’s military action and accused the island of taking the computer chip industry away from the United States.

“Taiwan should pay us for defense,” the Republican presidential candidate said in an interview with Bloomberg Businessweek. “You know, we’re no different than an insurance company.”

Trump’s remarks, made public Tuesday, add uncertainty to Trump’s approach to Taiwan at a time his running mate, JD Vance, has called China the “biggest threat” to the United States. President Joe Biden has said he would send troops to defend the island.

In Taiwan, Premier Cho Jung-tai responded that Taiwan is “willing to take on more responsibility” and would defend itself.

In a statement, Taiwan’s de-facto embassy in Washington said it is in the interest of the U.S. and the international community to preserve peace and stability in the Taiwan Strait because it is an indispensable part of global prosperity.

“As the threat of military coercion increases, Taiwan is doing its part by actively strengthening deterrence capabilities with the support of the United States under the Taiwan Relations Act,“ the Taipei Economic and Cultural Representative Office said.

As the rivalry between Washington and Beijing heats up, Taiwan — an island that broke away from mainland China in 1949 following a civil war — has become one of the thorniest issues in U.S.-China relations.

Beijing claims sovereignty over the island and vows to take it by force if necessary to achieve unification. Washington insists any differences be resolved peacefully and U.S. law obligates it to supply Taiwan with hardware and technology for self-defense. In the past several years, ties between Washington and Taipei have grown stronger, as Beijing ratchets up military and diplomatic pressure on the island.

Last month, the Biden administration approved a $360 million weapons sale to Taiwan, sending the island hundreds of armed drones, missile equipment and related support material. Taiwan pays for the military equipment.

Citing the arms sale and other unspecified U.S. moves to undermine Beijing’s interests and trust between the two countries, China’s foreign ministry announced Wednesday it was canceling talks with the U.S. on arms control and nonproliferation.

“The responsibility full lies with the U.S.,” said Lin Jian, a spokesman for the Chinese foreign ministry.

In the interview, Trump said he didn’t feel “so secure” over the Taiwan Strait, where Beijing has “been very aggressive and got ships all over the place.” He suggested that China could easily take over the island but has not done so because of Taiwan’s prized semiconductor industry, which make the computer chips that power everything from smartphones to cars and satellites.

“That’s the apple of President Xi’s eye,” Trump said, referring to Chinese President Xi Jinping.

He suggested that Taiwan has a stranglehold on the computer chip industry over the U.S. and because of that, it has the means to pay.

“I mean, how stupid are we? They took all of our chip business. They’re immensely wealthy,” Trump said.

Rep. Michael McCaul, chair of the House Foreign Affairs Committee, called Taiwan “a perfect example of what we want all our allies to do,” as demanded by Trump.

“They have consistently been one of the biggest buyers of U.S. weapons for its defense,” said McCaul, a Republican, who travelled to Taiwan last month to affirm the U.S. support for the island.

Rep. Raja Krishnamoorthi, a Democrat, accused the former president of betraying Taiwan.

“Former President Trump’s threat to abandon our nation’s longstanding, bipartisan commitments to Taiwan would mean betraying one of the world’s most vibrant democracies to the Chinese Communist Party,” said Krishnamoorthi, ranking member of the House Select Committee on China.

“Failing to provide for Taiwan’s defense would not only be potentially illegal under the Taiwan Relations Act, it would be a betrayal of American values and our democratic institutions,” he added.

Trump “did not say the U.S. won’t defend Taiwan,” said Miles Yu, who previously served in the Trump administration and is director of the China Center at the Hudson Institute, a Washington think tank. The former president said Taiwan should share more of the costs for such a collective defense, which is “far less of a problem” for Taiwan than for other U.S. allies in the region, he said.

“The defense of Taiwan is enshrined in the Taiwan Relations Act,” Yu said. “The joint defense of Taiwan is a national consensus. To change that will be extremely difficult.”

But, compared to Biden, Trump would place “utmost importance” on building credible deterrence over Taiwan, Yu said, adding Trump has said he would “bomb” Beijing if it should invade Taiwan.  

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