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HomeNewsChina Slaps Sanctions on U.S. Defence Firms Over Taiwan Arms Sales

China Slaps Sanctions on U.S. Defence Firms Over Taiwan Arms Sales

China has imposed sanctions on 20 United States defence-related companies and 10 senior executives in response to recent large-scale American arms sales to Taiwan, escalating tensions between Beijing and Washington, Hobnob News reports.

The sanctions, announced on Friday by China’s Ministry of Foreign Affairs, include the freezing of assets held in China and a ban on Chinese individuals and organisations from conducting business with the affected entities.

Among the sanctioned companies are Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Boeing’s St. Louis defence unit. Also targeted is Palmer Luckey, founder of defence technology firm Anduril Industries, along with other unnamed executives. Those sanctioned are barred from entering China and from engaging in any commercial activities within the country.

The move follows the United States’ recent announcement of an arms package for Taiwan valued at over $10 billion, which, if fully approved by the U.S. Congress, would represent the largest weapons sale to the self-governed island to date.

China, which considers Taiwan part of its sovereign territory, condemned the deal, describing it as a serious violation of its core national interests.

“The Taiwan question lies at the very heart of China’s core interests and represents the first red line that must not be crossed in China–U.S. relations,” the Chinese foreign ministry said in a statement. “Any company or individual involved in arms sales to Taiwan will pay the price for this wrongdoing.”

Beijing also urged Washington to halt what it described as “dangerous moves” that undermine regional stability by arming Taiwan.

Taiwan remains one of the most sensitive flashpoints in U.S.–China relations, with analysts warning that escalating military and diplomatic tensions could spark a broader conflict. In recent years, China has significantly increased military activity around the island, including frequent naval and air force drills in nearby waters and airspace.

Under U.S. federal law, Washington is required to assist Taiwan in maintaining its self-defence capabilities, a policy that continues to fuel friction with Beijing amid already strained relations over trade, technology, and human rights issues.

The latest sanctions add to a growing list of retaliatory measures by China and underscore the deepening strategic rivalry between the world’s two largest economies.

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