After years of doubt surrounding its financial condition, the Ching Fu Shipbuilding Company, which previously won the contract to produce Taiwan’s new minehunting vessels, has admitted deep financial problems. As a result, the Republic of China Navy (ROCN) has been forced to cancel the contract.

Whether it is directly taken over by Ching Fu’s larger competitor, the CSBC Corporation, or a fresh tender and selection process is launched, a significant delay in the delivery of these vessels is now unavoidable. Acquisition delays may not be too serious for great powers, but they are an unfortunate omen for a small state with ambitious plans for indigenous military modernisation.