UPDATE 3-U.S. Senate panel advances bill to boost support for Taiwan

(Adds Taiwan comment; paragraph 7)

By Patricia Zengerle and Michael Martina

WASHINGTON, Sept 14 (Reuters) - A U.S. Senate committee on Wednesday approved legislation that would significantly enhance U.S. military support for Taiwan, including provisions for billions of dollars in additional security assistance, as China increases military pressure on the democratically governed island.

The Senate Foreign Relations Committee backed the Taiwan Policy Act of 2022 by 17-5, despite concerns about the bill in U.S. President Joe Biden's administration and anger about the measure from Beijing.

The strong bipartisan vote was a clear indication of support from both Republicans and Biden's fellow Democrats for changes in U.S. policy toward Taiwan, such as treating it as a major non-NATO ally.

Sponsors said the bill would be the most comprehensive restructuring of U.S. policy toward the island since the Taiwan Relations Act of 1979 - the bedrock of U.S. engagement with what China views as one of its provinces since Washington opened up relations with Beijing that year.

"We need to be clear-eyed about what we are facing," said Senator Bob Menendez, the committee's Democratic chairman, while stressing that the United States does not seek war or heightened tensions with Beijing.

"If we want to ensure Taiwan has a fighting chance, we must act now," said Senator Jim Risch, the committee's top Republican, arguing that any change in the status quo for Taiwan would have "disastrous effects" for the U.S. economy and national security.

Taiwan's presidential office thanked the Senate for its latest show of support, saying the bill will "help promote the Taiwan-U.S. partnership in many ways", including security and economic cooperation.

The bill would allocate $4.5 billion in security assistance for Taiwan over four years, and supports its participation in international organizations.

The act also includes extensive language on sanctions toward China in the event of hostilities across the strait separating the mainland from Taiwan.

BEIJING'S OPPOSITION

When the bill was introduced in June, China responded by saying it would be "compelled to take resolute countermeasures" if Washington took actions that harmed China's interests.

"We haven't discussed any specifics," Hsiao Bi-khim, Taiwan's de facto ambassador to Washington, told reporters at an event at the Capitol when asked if she has had discussions with the White House over specific sanctions.

"We talked about integrated deterrence in a broader sense of the need to explore different tools to ensure that the status quo in the Taiwan Strait can be maintained," Hsiao said.