Beijing, December 28: China announced sanctions on Friday against 10 individuals and 20 U.S. defence companies, including Boeing’s St. Louis defence unit, in retaliation for Washington’s latest arms sales to Taiwan, escalating tensions between the two countries.
China’s foreign ministry said the measures would freeze any assets the targeted companies and individuals hold in China and bar Chinese organisations and individuals from doing business with them. Those sanctioned, including the founder of defence firm Anduril Industries and senior executives from the listed companies, are also banned from entering China.
Other firms named in the sanctions include Northrop Grumman Systems Corporation and L3Harris Maritime Services.
The move follows Washington’s announcement last week of $11.1 billion in arms sales to Taiwan, the largest U.S. weapons package ever approved for the island, drawing a sharp response from Beijing.
“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, urging the United States to halt what it described as “dangerous” efforts to arm Taiwan.
The United States strongly objected to the sanctions. A State Department spokesperson said U.S. policy on providing Taiwan with defensive capabilities has remained consistent across multiple administrations and contributes to peace and stability across the Taiwan Strait.
“We strongly object to Beijing’s efforts to retaliate against U.S. companies for their support of U.S. arms sales that support Taiwan’s self-defence capabilities,” the spokesperson said, calling on China to stop military, diplomatic and economic pressure on Taiwan and instead engage in dialogue with Taipei.
China views democratically governed Taiwan as part of its territory, a claim the island’s government rejects. U.S. arms sales to Taiwan are a long-standing source of friction between Beijing and Washington.
Analysts said the sanctions appear largely symbolic, as China has limited business ties with U.S. defence contractors, though the country remains a major buyer of Boeing’s civilian aircraft.
The announcement comes as Boeing has been in talks to sell Chinese airlines up to 500 civilian jets, a potential breakthrough in the world’s second-largest aviation market after years of stalled orders amid U.S.-China trade tensions.
