China on Friday announced sanctions against 20 US defence-related companies and 10 senior executives, a move that followed Washington’s approval of a large arms package for Taiwan.
According to the Chinese foreign ministry, the measures include freezing the targeted companies’ assets in China and prohibiting Chinese individuals and organisations from conducting business with them. The sanctioned executives are also barred from entering the country, and their assets in China have been frozen.
Among the companies named are Northrop Grumman Systems Corporation, L3Harris Maritime Services and Boeing in St. Louis. Anduril Industries founder Palmer Luckey was listed among the executives affected by the sanctions.
The announcement came a week after the United States unveiled an arms-sale package for Taiwan valued at more than $10 billion. If approved by the US Congress, it would represent the largest weapons sale to the self-governed island to date.
China, which claims Taiwan as its territory, criticised the US decision and warned of consequences for companies involved. The foreign ministry said the Taiwan issue lies at the centre of China’s core interests and described it as a red line in China–US relations. It also called on Washington to halt what it described as “dangerous moves” to arm Taiwan.
Taiwan remains a major source of tension between Beijing and Washington, with analysts warning that the dispute could escalate into military conflict. China argues that US arms sales to Taiwan violate bilateral diplomatic agreements.
In recent years, China’s military has increased its activity around Taiwan, regularly conducting drills involving warships and fighter jets near the island.
Under US federal law, Washington is required to help Taiwan maintain its self-defence capabilities, a policy that has become increasingly contentious amid already strained US–China relations over trade, technology and human rights issues.