The Taiwan deal with Eurocopter, a subsidiary of German-based EADS, could strain China-European relations which, like Sino-US ties, have been hurt by trade disputes.
Taiwan said on Friday it would buy up to 20 military helicopters from a European manufacturer in a move likely to irritate China less than a week after Washington proposed a $6.4 billion arms deal with the island.
The Taiwan deal with Eurocopter, a subsidiary of German-based EADS, could strain China-European relations which, like Sino-US ties, have been hurt by trade disputes and the value of the Chinese currency.
European arms sales to the self-ruled island that Beijing considers a breakaway province of China 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 infuriated 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 defence ministry spokesman Martin Yu said the island would buy EC-225 search-and-rescue helicopters. He provided no further details.
"What is equally odd about the contract award is China has remained silent on the issue after it threatened to sanction US companies selling arms to Taiwan and occurs at the same time European leaders have been pushing for a lifting of arms exports to China," Defence 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 US pressure.
China has blasted the United States over a planned $6.4 billion arms package for Taiwan, saying it would place sanctions on US firms that sell weapons to the island.
China's foreign ministry did not immediately respond to questions on the helicopter sale.
As relations have thawed under Taiwan's China-friendly president Ma Ying-jeou, Beijing has avoided slamming the island over weapons purchases, directing its venom instead at Washington.
US president Barack Obama's administration notified Congress a week ago of its first proposed arms sales to Taiwan including Black Hawk helicopters, Patriot "Advanced Capability-3" anti-missile missiles, and command-and-control technology.
But Washington has so far held off selling Taiwan more advanced weapons that the island has sought, including additional F-16 fighter jets and new submarines.
Taiwan seeks advanced foreign-made weapons to update its military, which has begun to lag China in the balance of power due to a massive increase in Chinese defence spending and investment in more high-tech fighters and warships.
The Eurocopter can be used for search and rescue missions at night and at sea following military or civilian accidents, military sources in Taipei said.
"They can fly far, and the equipment we have now can't do that," the source said. He said the deal with Eurocopter was "basically done".
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