Lockheed Martin Corporation (LMT): Will It Risk China’s Wrath by Supplying 66 F-16s to Taiwan?

Will the U.S. send F-16C/Ds?

So far, the Obama administration hasn’t agreed to send Taiwan the upgraded F-16s, or formally accepted the LOR. However, the administration has also said it hasn’t ruled it out. What’s clear is Taiwan needs new fighters to have adequate leverage for continued diplomacy with China. However, having the U.S. supply Taiwan with upgraded F-16s would negatively affect China-U.S. relations. Consequently, such a decision seems unlikely. But if the United States does agree to supply Taiwan with F-16C/Ds, that will definitely boost Lockheed Martin Corporation (NYSE:LMT)’s bottom line — although the agreed-upon F-16A/B upgrade, which is slated to start in 2017, is still positive news for the defense contractor.

The article Will Lockheed Martin Risk China’s Wrath by Supplying 66 F-16s to Taiwan? originally appeared on Fool.com and is written by Katie Spence.

Fool contributor Katie Spence has no position in any stocks mentioned. Follow her on Twitter: @TMFKSpence. The Motley Fool owns shares of Lockheed Martin.

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