In a move that has infuriated Beijing, U.S. President George W. Bush has decided to offer Taiwan a package of weapons that will allow the island to significantly upgrade its defenses. While four Arleigh Burke-class destroyers equipped with the Aegis air-defense system have been excluded, relations between the United States and China are sure to sour. All Asian nations have to be ready for the spillover that will follow this decision.

The U.S. is obliged under the terms of the Taiwan Relations Act to sell Taiwan weapons that allow the island to defend itself. According to U.S. officials, the changing balance of power in the Taiwan Strait, the result of unrelenting modernization by the Chinese military and the continuing deployment of missiles on the mainland opposite Taiwan, provided ample justification for Mr. Bush's decision to proceed with the sales.

Under the deal, the largest such arms package in a decade, the U.S. would sell Taiwan four Kidd-class destroyers, 12 antisubmarine P-3 "Orion" aircraft and eight diesel submarines. The package also includes a technical briefing on systems that Taiwan may purchase later, such as the PAC-3 missile defense system, torpedoes, decoys, minesweeping helicopters and self-propelled artillery.