‘Will pay the price’: China sanctions 20 US firms over $10 bn arms sale to Taiwan; freezes all assets

China on Friday announced sweeping countermeasures against 20 US defence-related companies and 10 senior executives, freezing their assets and banning business dealings in response to Washington’s approval of large-scale arms sales to Taiwan.

The Chinese foreign ministry said the sanctions were imposed under China’s anti-foreign sanctions law and would take effect immediately.


The move follows the US administration’s approval of a major arms package for Taiwan valued at over $10 billion, according to the US state department.

Under the measures, all movable and immovable assets of the sanctioned companies located in China will be frozen, while Chinese organisations and individuals will be barred from conducting business or cooperation with them.

Restrictions were also imposed on 10 senior executives, including Palmer Luckey, founder of Anduril Industries, limiting their assets and activities related to China.

The sanctioned entities include major US defence firms such as Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing (St Louis), Gibbs & Cox, VSE Corporation, Sierra Technical Services, Red Cat Holdings, Teal Drones, ReconCraft, Epirus, Dedrone Holdings, Area-I, Blue Force Technologies, Dive Technologies, Rhombus Power and Lazarus Enterprises, among others, the ministry said.

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 foreign ministry statement carried by the Global Times.

A ministry spokesperson said the Taiwan issue was at the core of China's national interest. “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,” the spokesperson added.

China also urged the US to honour its commitments, stop supplying weapons to Taiwan and avoid actions that could raise tensions in the Taiwan Strait, warning that it would continue to take “resolute measures” to protect its sovereignty and security.

The sanctions follow the Trump administration’s approval last week of a major arms package for Taiwan, which the US state department said includes medium-range missiles, howitzers and drones. According to Focus Taiwan, the proposed sale could include eight arms packages, such as HIMARS rocket systems, anti-tank missiles and drones, with an estimated total value of $11.1 billion.

Five of the packages are covered under a NT$1.25 trillion ($39.85 billion) special defence budget proposed by Taiwan’s government and awaiting legislative review, Focus Taiwan reported, citing the island’s defence ministry.

China has repeatedly opposed US arms sales to Taiwan, warning that such moves threaten regional peace and stability.

(With inputs from agencies)