China has imposed sanctions against 20 American defense companies
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China has announced sanctions against 20 American defense companies and 10 executives over Washington's recent arms sales to Taiwan. These measures are considered largely symbolic, reports Bloomberg.

China's Foreign Ministry announced on December 26 that it would impose sanctions on companies including Northrop Grumman Systems Corp., L3Harris Maritime Services, Boeing's St. Louis units, and Vantor, formerly known as Maxar Intelligence. The measures include freezing any assets the companies have in China and banning them from doing business with Chinese organizations.

Palmer Luckey, founder of Anduril Industries Inc., and Vantor CEO Dan Smout were sanctioned. Their assets in China were frozen, and they were banned from transactions and entry to the mainland, Hong Kong, and Macau.

The sanctions were a response to what Beijing described as a "large-scale" sale of American weapons to Taiwan. Last week, the US State Department announced the approval of a military aid package for the island worth up to $11 billion – one of the largest ever, which includes the supply of weapons, including missiles, drones, and artillery systems.

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"Any provocative actions that cross the line on the Taiwan issue will be met with a resolute response from China. Any enterprise or individual involved in selling arms to Taiwan will pay for their erroneous actions," said a spokesperson for the Chinese Ministry of Foreign Affairs.

The actual impact of these measures is likely to be minimal. Most of the companies and executives subject to the sanctions have little to no presence in China, and some are already on the Commerce Department's list of unreliable entities.

Last month, during a phone conversation, the leader of the PRC Xi Jinping stressed in a conversation with the US President Donald Trump that the return of Taiwan to Chinese control is an "integral part of the post-war international order."

  • On December 18, the U.S. Government approved the sale of weapons to Taiwan for $11.1 billion. This includes HIMARS rocket systems, howitzers, Javelin and TOW anti-tank missiles, Altius drones with loitering munitions, and spare parts for other equipment.
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