China is striking back at the U.S. defense industry by sanctioning 20 companies and 10 executives in response to Washington’s record-breaking arms package for Taiwan. The Chinese Foreign Ministry announced it would freeze any assets the targets held in China and bar Chinese citizens from doing business with them.
Why China is targeting US defense firms
Beijing’s move comes a week after the United States approved an $11.1 billion weapons sale to Taiwan, the most extensive U.S. arms package ever for the island. The Associated Press noted the package still requires congressional approval.
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China claims self-ruled Taiwan as its own territory and says it must eventually come under Beijing’s control, while Taiwan’s government rejects that claim, the AP reported.
In a sharp rebuke cited by Reuters, the ministry described the status of Taiwan as the “first red line” in bilateral relations, warning that it sits at the “very core” of Beijing’s national interests.
Who is on China’s sanctions list?
The Associated Press identifies major contractors on the blacklist, including L3Harris Maritime Services, Northrop Grumman and the St. Louis division of Boeing. Among the ten individuals targeted is Anduril Industries founder Palmer Luckey.
According to the AP, these executives face a total ban on entering Chinese territory and are prohibited from conducting any commercial activities there. Reuters added that the entry bans extend to China for the executives, while the Wall Street Journal said they are also prohibited from entering Hong Kong and Macau.
The Journal noted that the move is largely symbolic, because U.S. defense contractors generally do little business in China.
China’s Foreign Ministry said the latest U.S. arms decision “interferes in China’s internal affairs, and seriously undermines China’s sovereignty and territorial integrity,” according to the Journal.
Reuters and AP quoted the ministry warning that “any provocative actions that cross the line on the Taiwan issue will be met with a strong response from China” and that “any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing.”
Under the 1979 Taiwan Relations Act, the United States has for decades provided Taiwan with defensive arms, a policy followed by every administration and a persistent source of friction with Beijing.
How the arms deal could raise Taiwan tensions
China’s Foreign Ministry urged Washington to stop what it called “dangerous” efforts to arm Taiwan. According to the AP, experts worry that the island has become a dangerous flashpoint between the superpowers. The People’s Liberation Army has also reportedly intensified its operational tempo, conducting almost daily air and sea exercises in the surrounding area.
