Beijing on Friday announced sanctions against 20 U.S. defense-related companies and 10 executives, following Washington’s recent approval of large-scale arms sales to Taiwan. According to the Chinese Foreign Ministry, the sanctions include freezing the companies’ assets in China and banning the affected individuals and organizations from conducting business in the country.
The list of sanctioned firms includes Northrop Grumman, L3Harris Maritime Services, and Boeing in St. Louis. Among the executives is Palmer Luckey, founder of defense company Anduril Industries, who is now barred from doing business in China and entering the country, the Associated Press reported.
The U.S. arms package, valued at over $10 billion, has drawn a strong response from China, which claims Taiwan as part of its territory. If approved by Congress, it would be the largest U.S. weapons sale to Taiwan to date.
“We stress once again that the Taiwan question is at the very core of China’s core interests and the first red line that must not be crossed in China-U.S. relations,” the Foreign Ministry said in Friday’s statement. “Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing.”
China also urged the U.S. to halt what it described as “dangerous moves of arming Taiwan.” Taiwan remains a major flashpoint in U.S.-China relations, with analysts warning of the risk of military escalation. China maintains that U.S. arms sales violate diplomatic agreements and has increased its military presence around the island, conducting near-daily drills involving warships and fighter jets.
Under U.S. federal law, Washington is required to assist Taiwan in its self-defense, a provision that has heightened tensions with Beijing. Relations between the two countries are already strained over trade, technology, and human rights issues.