China announced sanctions on Friday against 20 American defense companies and 10 executives, in a sharp retaliation to the United States’ approval of a record-breaking $11.15 billion arms package to Taiwan earlier this month.
The measures, enacted under China’s Anti-Foreign Sanctions Law, include freezing any assets the targeted entities and individuals hold in China, prohibiting Chinese organizations and individuals from conducting business with them, and barring the executives from entering the country.
Notable companies on the list include Boeing’s St. Louis operations, Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Vantor (formerly Maxar Intelligence). Among the sanctioned individuals is Palmer Luckey, founder of defense firm Anduril Industries, along with senior executives from the affected companies.
“The Taiwan issue is the core of China’s core interests and the first red line that cannot be crossed in China-U.S. relations,” a Chinese Foreign Ministry spokesperson said in a statement. “Any provocative actions that cross the line will be met with a strong response from China.”
The sanctions come in direct response to the U.S. State Department’s December 18 approval of one of the largest arms sales packages to Taiwan in history. Valued at up to $11.15 billion, the deal includes advanced weaponry such as 82 High Mobility Artillery Rocket Systems (HIMARS), 420 Army Tactical Missile Systems (ATACMS) with ranges up to 300 kilometers, 60 M109A7 self-propelled howitzers, Javelin and TOW anti-tank missiles, Altius loitering munition drones, and command-and-control software to bolster Taiwan’s defensive capabilities.
U.S. officials described the sales as supporting Taiwan’s efforts to modernize its forces and maintain a credible defense, in line with American obligations under the Taiwan Relations Act. Taiwan’s defense ministry welcomed the package, stating it would enhance self-defense and regional stability amid increasing military pressure from Beijing.
Analysts view China’s sanctions as largely symbolic, given that most targeted U.S. defense firms have limited or no business operations in mainland China. However, the move underscores escalating tensions over Taiwan, which Beijing claims as its territory and has vowed to reunify, by force if necessary.
This is not the first time China has imposed such countermeasures; similar sanctions have followed previous U.S. arms sales to the island. The latest action highlights the Taiwan Strait as a persistent flashpoint in U.S.-China relations, with experts warning of potential risks to broader bilateral ties.