China sanctions 20 US defense companies over record Taiwan arms deal

China has imposed sanctions on 20 US defense companies and their executives in response to Washington’s large-scale arms sale package to Taiwan last week.

If approved by the US Congress, the deal will be the largest American weapons package ever provided to Taiwan, valued at $11.1 billion. The agreement includes medium-range missiles, howitzers, and drones.

The Chinese Ministry of Foreign Affairs stated that the package “seriously violates the one China principle and the three China-US joint communiqués, interferes in China’s internal affairs, and undermines China’s sovereignty and territorial integrity.”

The sanctioned companies 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.

The movable and immovable property of these companies in China, as well as their other assets, will be frozen, and all Chinese organizations and individuals will be prohibited from conducting transactions, cooperation, or other activities with these companies.

Beijing also imposed sanctions on 10 senior executives of these companies for their roles in the arms sales. These individuals will not be granted visas and will be banned from entering China, including Hong Kong and Macau.

Among the executives are Palmer Luckey, the founder of Anduril, and John Cuomo, the president and CEO of VSE Corporation.

Most countries, including the US, do not recognize Taiwan as an independent state. However, Washington opposes attempts to take the island by force and is legally obligated to provide the island with the means to defend itself.