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China Sanctions US Defense Firms over Taiwan Arms Sales
China sanctions 20 US defense companies and 10 executives in response to Washington’s $11.1bn weapons deal with Taiwan, freezing assets and restricting business.
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by Muhammad Hashir
2025-12-26
China Sanctions US Defense Firms over Taiwan Arms Sales

The Chinese Ministry of Foreign Affairs announced on Friday that 20 US defense firms and 10 individuals will face sanctions in retaliation for Washington’s $11.1 billion arms deal with Taiwan — one of the largest in recent years. Beijing regards Taiwan as part of its territory and has repeatedly condemned foreign arms sales to the island.

“Any provocative actions that cross the line on the Taiwan issue will be met with a strong response from China,” the ministry said, urging the US to halt “dangerous” efforts to arm the island.

The sanctioned companies include Boeing’s St. Louis branch, Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Lazarus AI. Targeted individuals include the founder of Anduril Industries and nine senior executives from the affected companies.

The sanctions freeze the China-based assets of the companies, prohibit domestic organizations and individuals from doing business with them, and bar the named executives from entering China. The measures are effective from December 26.

The US, bound by law to provide Taiwan with defensive capabilities, has defended its arms sales as necessary to deter potential aggression from China. The latest deal, announced by President Donald Trump on December 17, includes 82 High Mobility Artillery Rocket Systems (HIMARS), 420 Army Tactical Missile Systems (ATACMS), 60 self-propelled howitzers with related equipment, and drones — worth over $11 billion collectively.

Taiwan’s Ministry of National Defense welcomed the deal, saying it would help the island “maintain sufficient self-defense capabilities and rapidly build strong deterrent power.”

The weapons package mirrors the systems the US has supplied to Ukraine to counter Russian attacks, highlighting Washington’s broader strategy of supporting allied territories under threat. China’s sanctions signal a continuation of rising tensions between Beijing and Washington over Taiwan, a flashpoint in regional security.
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