China Sanctions U.S. Defense Firms, Executives Over Taiwan Arms Sales
Beijing warns companies will “pay the price” as tensions with Washington deepen over record weapons package.
ERBIL (Kurdistan24) — China on Friday imposed sanctions on 20 U.S. defense-related companies and 10 senior executives, a week after the United States announced a large-scale arms sales package to Taiwan valued at more than $10 billion, according to the Associated Press (AP).
The Chinese foreign ministry said the measures include freezing the sanctioned companies’ assets in China and banning individuals and organizations within the country from conducting business with them.
The affected executives are also barred from entering China, and their assets in the country have been frozen.
Among the companies targeted are Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Boeing’s defense-related operations in St. Louis. One of the executives sanctioned is Palmer Luckey, founder of defense technology firm Anduril Industries.
Beijing’s move follows Washington’s announcement of what could become the largest-ever U.S. weapons package to Taiwan if approved by the U.S. Congress. China has reacted angrily to the proposed sale, describing it as a direct challenge to its sovereignty and a serious threat to regional stability.
“We stress once again that the Taiwan question is at the very core of China’s core interests and the first red line that must not be crossed in China–U.S. relations,” the foreign ministry said in a statement. “Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing.”
The ministry also urged the United States to halt what it described as “dangerous moves of arming Taiwan,” accusing Washington of undermining bilateral relations and violating diplomatic understandings between the two countries.
Under U.S. federal law, Washington is obligated to assist Taiwan in maintaining its self-defense capabilities, a policy that Beijing strongly opposes. The issue has further strained already tense relations between the two powers, which are also divided over trade disputes and technology restrictions.
The latest sanctions underscore China’s willingness to use economic and diplomatic pressure to push back against U.S. defense cooperation with Taiwan, as both sides struggle to prevent their rivalry from spiraling into open conflict.