Taiwanese military orders German helicopters

China has yet to respond to news of the agreement, thought to be the first European sale to Taiwan's armed forces since the early 90s.

Taiwan's defence ministry spokesman Martin Yu said the island would buy EC-225 search-and-rescue helicopters. The $111m contract with Eurocopter, a subsidiary of EADS, is for three helicopters, with an option to buy up to 17 more.

The move could fray Sino-European ties, already under strain over trade and currency issues. Yesterday China filed a complaint to the World Trade Organisation over the EU's anti-dumping tariffs on shoes.

The arms deal could also affect Beijing's relations with Taipei, which have improved markedly since President Ma Ying-jeou took office on a platform of improving ties two years ago.

However, others believe that China could remain silent or issue only a muted response if it is satisfied that the helicopters are not for military tasks.