Beijing announced on Friday, Dec. 27, that it is leveling sanctions against seven companies and their senior executives over U.S. military assistance to Taiwan. Among the companies sanctioned are Boeing subsidiary Insitu Inc., RTX Inc’s Raytheon Canada and Raytheon Australia.
The sanctions reportedly freeze the companies’ and executives’ assets in China and bar them from trading or collaborating with Beijing.
China said the move is retaliation for U.S. military sales and aid to Taiwan. Washington D.C. recently approved more than $570 million in defense support to the independently governed island and gave the green light to weapons sales worth around $385 million.
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China has long claimed Taiwan as its own and has never ruled out force to bring the island under its control. Taiwan said that it is a sovereign nation, and the U.S. is required by law to defend the country.
Earlier this month, Taiwan said that China sent dozens of military vessels to blockade the island, which Taipei said threatens peace and stability as well as trade in the Indo-Pacific region.
China’s sanctions are also reportedly in response to the approval of the U.S’ annual defense spending bill, which the Chinese Communist Party (CCP) said “includes multiple negative sections about China.”
The defense bill also reportedly directs more resources toward a more confrontational approach toward Beijing, while expanding a ban on U.S. military purchases of Chinese products, such as drone technology.
China claims the U.S. is using the “so called” threat from Beijing to rationalize boosting its military budget.