China Sanctions 20 U.S. Defense Firms Over Historic $10 Billion Taiwan Arms Deal
BEIJING / WASHINGTON — In a major escalation of cross-strait tensions, China has announced immediate sanctions against 20 United States-based companies following Washington's approval of a $10 billion arms sale to Taiwan.
The retaliatory measures, confirmed by Beijing on Friday, include freezing assets and restricting business operations, marking one of the most significant pushbacks against U.S. military support for Taiwan in recent years.
Why Did China Impose Sanctions?
The sanctions are a direct response to a newly approved U.S. weapons package for Taiwan, which reportedly includes advanced missile systems, radar equipment, and critical logistical support.
Beijing, which views Taiwan as a breakaway province, condemned the deal as a violation of its sovereignty. A Ministry of Foreign Affairs spokesperson stated, “The U.S. arms sale to Taiwan seriously violates the One-China principle and interferes in China’s internal affairs,” adding that the measures are necessary to defend national security.
Details of the Sanctions
While a full list of specific entities was not immediately released, officials confirmed the measures target defense manufacturers, aerospace contractors, and logistics firms linked to the arms package.
The penalties include:
Asset Freezes: Seizure of any assets held by these firms within mainland China.
Business Bans: Prohibition of new investments, partnerships, or trade with Chinese entities.
Travel Restrictions: bans on senior executives from the targeted companies entering China.
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Strategic Impact and Global Reactions
Experts suggest the move is largely political, designed to signal Beijing’s "red lines" regarding Taiwan without causing immediate global economic destabilization. However, it introduces new uncertainty for multinational corporations navigating the fragile U.S.-China supply chain.
U.S. and Taiwan Respond
Washington defended the sale, citing the Taiwan Relations Act, arguing the equipment is strictly for self-defense. Meanwhile, Taipei welcomed the support, calling it essential for maintaining regional stability in the face of increasing military pressure from the mainland.