China sanctions US defence firms over Taiwan arms sale. All about the move

people's republic of china on fri proclaimed sanctions against several US defence companies and senior executives in response to Washington's recent conclusion to okay large-scale arms sales to Taiwan.

According to a Global Times report, the Chinese Foreign Ministry said it will impose sanctions on 20 US defence-related companies and 10 senior executives who have been involved in supplying weapons to Taiwan in recent years. The action has been taken pursuant to China's Anti-Foreign Sanctions Law and will take effect immediately.

"Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China's firm response. Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing. No country or force shall ever underestimate the resolve, will and ability of the Chinese government and people to safeguard national sovereignty and territorial integrity," Global Times quoted a foreign ministry spokesperson as saying.

Beijing said the US arms sales to Taiwan "seriously violate the one-China principle and the three China-US Joint Communiques, interfere in China's internal affairs, and undermine China's sovereignty and territorial integrity".

According to the Chinese foreign ministry, the companies targeted by its sanctions for the Taiwan arms sales include Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing in St. Louis, Gibbs & Cox, Advanced Acoustic Concepts, VSE Corporation, Sierra Technical Services, Red Cat Holdings, Teal Drones, ReconCraft, High Point Aerotechnologies, Epirus, Dedrone Holdings, Area-I, Blue Force Technologies, Dive Technologies, Vantor, Intelligent Epitaxy Technology, Rhombus Power and Lazarus Enterprises.

Under the sanctions, all movable and immovable assets of these companies located in China will be frozen. Chinese organisations and individuals will also be barred from conducting business, cooperation, or any other dealings with the listed entities.

The measures also extend to 10 senior executives, including Palmer Luckey, founder of Anduril Industries, and top executives from companies such as L3Harris, VSE Corporation and others. According to the ministry, their assets in China will be restricted, and they will face limitations on activities related to China.

The Chinese sanctions follow the US administration's approval last week of a major arms package for Taiwan under President Donald Trump.

According to the US State Department, the proposed sales are valued at over $10 billion and include medium-range missiles, howitzers and drones.

The potential sale of eight arms packages to Taiwan, including HIMARS rocket systems, anti-tank missiles, and drones, at an estimated total cost of USD 11.1 billion, Focus Taiwan reported.

Five of the eight arms packages, the M109A7 howitzers, HIMARS rocket systems, TOW 2B anti-tank missiles, anti-armor drones, and FGM-148 Javelin anti-tank missiles, are covered in an NT$1.25 trillion (US$39.85 billion) special defence budget put forth last month by the Taiwan government, pending lawmakers' review, the Taiwanese news outlet said quoting the country's Defence Ministry.

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