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From the China Post -

Taiwan submarines deal may anger China, experts say

China would likely react with hostility to any attempt by the United States to build and sell eight submarines to Taiwan, The Day newspaper in Connecticut, reported.
Submarine experts said Monday that China would likely impose economic sanctions against the U.S, but this would not necessarily stop the Groton, Connecticut-based Electric Boat Co. from building them.

If there is money available and if the program is endorsed by the United States government, Electric Boat wants to design and build the ships for Taiwan," said John B. Padgett III, vice president of Electric Boat, the submarine-building division of General Dynamics.

Electric Boat is seeking the order as the shipyard copes with a slowdown in U.S. orders.

China is likely to regard the submarines as offensive weapons, rather than defensive ones, but U.S. Representative Rob Simmons, who has adopted the order as a pet project, says these concerns are "Ludicrous." China's massive submarine fleet dwarfs the four submarines sought by Taiwan.

"There is no question in my mind that eight submarines in Taiwan would be more defensive in nature rather than offensive in nature," said Simmons. He says he expects a deal to be reached with Taiwan later this month.

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