WASHINGTON, Sept 2 (Reuters) – The U.S. State Department has approved a potential sale of $1.1 billion in military equipment to Taiwan, including 60 anti-ship missiles and 100 air-to-air missiles, with China threatening to retaliate. The Pentagon announced the package on Friday in the wake of China’s aggressive military exercises around Taiwan following a visit to the island last month by US House Speaker Nancy Pelosi, the highest-ranking US official to travel to Taipei for years now. read more The sale includes Sidewinder missiles, which can be used for air-to-air and surface attack missions, at a cost of about $85.6 million, Harpoon anti-ship missiles at an estimated cost of $355 million, and support for Taiwan’s surveillance radar program for an estimated $665.4 million, the Pentagon’s Defense Security Cooperation Agency (DSCA) said. Sign up now for FREE unlimited access to Reuters.comSign up Liu Pengyu, a spokesman for the Chinese embassy in Washington, said in a statement that the potential arms sale “seriously endangers China-US relations and peace and stability in the Taiwan Strait.” “China will resolutely take legal and necessary countermeasures in light of the development of the situation,” he said. President Joe Biden’s administration said the package had been under consideration for some time and was developed in consultation with Taiwan and US lawmakers. “As the DPRK continues to increase pressure on Taiwan – including an increased military air and naval presence around Taiwan – and attempts to change the status quo in the Taiwan Strait, we are providing Taiwan with what it needs to maintain itself . defense capabilities,” Laura Rosenberger, senior White House director for China and Taiwan, said in a statement. Reuters reported last month that the Biden administration was planning new equipment for Taiwan, but that the equipment would maintain Taiwan’s current military systems and fulfill existing orders, not provide new capabilities, despite heightened tensions following the visit of Pelosi. read more The Pentagon said the equipment and support announced Friday would not alter the basic military balance in the region. US officials said they did not reflect any change in policy towards Taiwan. “These proposed sales are routine cases in support of Taiwan’s ongoing efforts to modernize its armed forces and maintain a credible defense capability,” a US State Department spokesman said on condition of anonymity. Taiwan’s defense ministry expressed its thanks, adding that China’s recent “provocative” activities posed a serious threat and the arms sale would help it counter China’s military pressure. “At the same time, it also proves that it will help our country strengthen its overall defense capabilities and jointly maintain security and peace in the Taiwan Strait and the Indo-Pacific region,” the ministry said in a statement. Rupert Hammond-Chambers, president of the US-Taiwan Business Council, said his organization opposes what he called a “restrictive approach” to arms sales to Taiwan. “As (China’s) People’s Liberation Army (PLA) recently demonstrated in its virtual blockade, the island faces a range of threats that require a range of capabilities. Denying the island the ability to mount a complete defense, over next year, it will create new gaps in Taiwan’s defenses that the PLA can exploit,” Hammond-Chambers said in a statement. The order reflects continued US support for Taiwan as Taipei faces pressure from China, which claims Taiwan as its own territory and has never ruled out using force to bring the democratically-ruled island under its control. The sales must be reviewed by Congress, but both Democratic and Republican congressional aides said they do not expect opposition. There have been at least two other visits to Taiwan by members of Congress from both parties since Pelosi’s visit, as well as by US state governors, all condemned by Beijing. read more The prime contractor for the Harpoon missiles is Boeing Co ( BA.N ). Raytheon ( RTX.N ) is the prime contractor for both the Sidewinder program and the radar. Taipei says that since the People’s Republic of China never ruled the island, it has no right to claim it. Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Patricia Zengerle and Michael Martina. additional reporting by Rami Ayyub, Steve Holland and Ben Blanchard in Taipei; Caitlin Webber writes. Edited by Lisa Shumaker and Stephen Coates Our Standards: The Thomson Reuters Trust Principles.