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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared UPDATE 1-Taiwan says to buy miltary helicopters from Europe 04 Feb 2010 Gold posts biggest one-day loss since 2008 04 Feb 2010 Camel burger newest "healthy" option on Dubai menu 04 Feb 2010 Google facing many risks in China standoff 04 Feb 2010 Jobless rate falls to 9.7 percent, 20,000 jobs cut 9:57am EST Camel burger newest "healthy" option on Dubai menu 04 Feb 2010 U.S. investors should be more worldly, says Goldman 04 Feb 2010 UPDATE 1-Strong 6.0 magnitude quake hits off California coast 04 Feb 2010 Gold posts biggest one-day loss since 2008 04 Feb 2010 Toyota grapples with PR bungles, tarnished brand | Video 04 Feb 2010 After U.S. deal, Taiwan to buy helicopters from Europe Ralph Jennings TAIPEI Fri Feb 5, 2010 9:18am EST Related News Taiwan says to buy air force helicopters from Europe Thu, Feb 4 2010 Obama to meet Dalai Lama despite Chinese warnings Tue, Feb 2 2010 China warns U.S. on Dalai Lama, says to punish arms firms Tue, Feb 2 2010 China versus Taiwan: How the political standoff may end Tue, Feb 2 2010 China: to sanction U.S. firms selling Taiwan arms Tue, Feb 2 2010 TAIPEI (Reuters) - Taiwan said on Friday it would buy up to 20 military helicopters from a European manufacturer less than a week after Washington infuriated China by proposing a $6.4 billion arms deal for the island which Beijing claims as its own. World | China The Taiwan deal with Eurocopter, a subsidiary of German-based EADS, has the potential to strain China-European relations, which, like Sino-U.S. ties, have been hurt by trade disputes and the value of the Chinese currency. But China's initial reaction was muted. "We understand these are rescue helicopters. We will continue to monitor the situation, especially the use of the planes," the Foreign Ministry said in a brief statement. European arms sales to the self-ruled island that Beijing considers a breakaway province have dried up in the past 17 years due to their political sensitivity, although EU-Taiwan trade ties are generally strong. A French deal in 1993 to sell Taiwan advanced Mirage fighter jets angered China, prompting Beijing to close the French consulate in southern Guangdong province and cut French firms out of lucrative contracts. China has claimed sovereignty over Taiwan since 1949, when Mao Zedong's forces won the Chinese civil war and Chiang Kai-shek's Nationalists fled to the island. Beijing has vowed to bring Taiwan under its rule, by force if necessary. Taiwan's defense ministry spokesman, Martin Yu, said the island would buy EC-225 search-and-rescue helicopters. He provided no further details. China has blasted the United States over a planned $6.4 billion arms package for Taiwan, saying it would place sanctions on U.S. firms that sell weapons to the island. "What is equally odd about the contract award is China has remained silent on the issue after it threatened to sanction U.S. companies selling arms to Taiwan and occurs at the same time European leaders have been pushing for a lifting of arms exports to China," Defense News reported, adding the $111 million deal would be signed in the next few days. Europe has an arms embargo in place against China following a bloody crackdown on pro-democracy demonstrators around Beijing's Tiananmen Square in 1989. In 2005, the European Union dropped plans to lift the embargo, bowing to U.S. pressure. (Additional reporting by Ben Blanchard and Farah Master in Beijing; Editing by Nick Macfie) World China More from Reuters Jobless rate falls to 9.7 percent, 20,000 jobs cut WASHINGTON (Reuters) - Payrolls unexpectedly fell in January, but the unemployment rate surprisingly dropped to a five-month low, according to a government report on Friday that hinted at labor market improvement. Toyota chief breaks silence as Prius recall eyed | Video UBS to reorganize struggling U.S. wealth management Taliban reject "deal" with Afghanistan, West JPMorgan CEO Dimon gets $16 million in stock, options Policymakers try to calm markets amid euro sell-off » More Top News Analysts mixed on jobless data "On a scale of one to 10, it's still a three or four," says one analyst on the conflicting unemployment data. Full Article White House: "Labor market healing" OECD indicators show better outlook Hoenig: Fed must eventually raise rates Economy Analysis: Google's standoff with China Since Google's bombshell announcement it may exit China, there's been seeming inaction. Why the near-silence? Full Article Google, NSA to team up in attack probe Indonesia blasts Google map of border Google books deal troubled: DOJ Technology © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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