China Imposes Sanctions on 20 U.S. Defense Firms and 10 Executives Over Taiwan Arms Sales

According to Rokna, citing NBC, following Washington’s announcement of a U.S. arms-sale package to Taiwan worth over $10 billion, which sparked a furious reaction from Beijing, China has sanctioned 20 U.S. defense-related companies and 10 executives. The sanctions, announced on Friday, come a week after the U.S. revealed the large-scale weapons deal.

According to China’s Ministry of Foreign Affairs, the measures include freezing the sanctioned companies’ assets in China and prohibiting both the individuals and organizations from conducting business in the country. Among the affected companies are Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Boeing in St. Louis. Palmer Luckey, founder of defense firm Anduril Industries, is one of the executives barred from entering China or conducting any business there.

The U.S. arms package, valued at over $10 billion, is likely to be the largest-ever weapons sale to Taiwan if approved by Congress. China claims Taiwan as its own territory and views the island as needing to fall under its control.

“We reiterate that the Taiwan issue lies at the very heart of China’s core interests and is the first red line that must never be crossed in China-U.S. relations,” the Chinese foreign ministry said on Friday. “Any company or individual involved in arms sales to Taiwan will face consequences for their actions.” The ministry also urged the U.S. to halt what it described as “dangerous moves to arm Taiwan.”

Taiwan has long been a sensitive flashpoint in U.S.-China relations, with analysts warning that tensions could escalate into military conflict. China maintains that U.S. arms sales to Taiwan violate diplomatic agreements between the two countries. In recent years, China has increased its military presence near Taiwan, conducting joint drills with warships and fighter jets almost daily in the surrounding waters and airspace.

Under U.S. federal law, Washington is obliged to assist Taiwan in self-defense, a point that has increasingly aggravated tensions with Beijing. The two countries also face ongoing disputes over trade, technology, and human rights issues.