(INVESTORS.COM) – The U.S. is seeking to sell the advanced General Dynamics (GD) M1A2 Abrams tank to Taiwan for the first time. It is part of a $2 billion arms deal that is angering China.
Sources told Reuters that an informal notification of the proposed sale has been sent to Congress. The deal will include 108 General Dynamics M1A2 Abrams tanks. Taiwan is seeking to update its inventory of U.S.-made battle tanks, which currently includes M60 Pattons.
However, General Dynamics stock edged lower in Thursday's stock market.
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The move adds to tensions with Beijing, as the Trump administration escalates the China trade war. Mainland China sees Taiwan as its own territory, and has never ruled out using force to secure control of the island. Taiwan is officially called the Republic of China, established by nationalists in 1949 fleeing the mainland after losing a civil war to the communists.