China hits US defence firms with sanctions over arms sales to Taiwan

BEIJING: China's foreign ministry announced sanctions on Friday targeting 10 individuals and 20 U.S. defence firms, including Boeing's St. Louis branch, over arms sales to Taiwan.

AI Brief

China sanctioned multiple US defense firms and executives, freezing assets and banning business and entry into China.
Move responds to the US's $11.1B arms sale to Taiwan, which Beijing calls a red line in China-US relations.
Symbolic impact on defense firms but notable timing, as Boeing is in talks to sell up to 500 civilian jets to Chinese carriers.

A spokesperson for the U.S. State Department said the United States strongly objected to the Chinese move, which freezes any assets the companies and individuals hold in China and bars domestic organisations and individuals from doing business with them.

Individuals on the Chinese list, including the founder of defence firm Anduril Industries and nine senior executives from the sanctioned firms, are also banned from entering China, it added.

Other companies targeted include Northrop Grumman Systems Corporation and L3Harris Maritime Services, and Boeing's BA.N St. Louis branch, which focuses on defense work.

The Chinese action appears largely symbolic given China's lack of dealings with U.S. defense firms, whereas it has been a major purchaser of Boeing civilian aircraft.

The move follows Washington's announcement last week of US$11.1 billion in arms sales to Taiwan, the largest ever U.S. weapons package for the island, drawing Beijing's ire.

"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 on Friday.

"Any provocative actions that cross the line on the Taiwan issue will be met with a strong response from China," the statement said, urging the U.S. to cease "dangerous" efforts to arm the island.

China views democratically-governed Taiwan as part of its own territory, a claim Taipei rejects.

The U.S. is bound by law to provide Taiwan with the means to defend itself, though such arms sales are a persistent source of friction with China.

The State Department spokesperson said this policy had "remained consistent across nine different U.S. administrations and contributes to the maintenance of 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-defense capabilities," the spokesperson said, while urging Beijing to cease military, diplomatic, and economic pressure against Taiwan and instead engage in meaningful dialogue with Taipei.

Boeing has been in talks to sell Chinese carriers up to 500 civilian jets, according to a report in September, which would represent a major breakthrough for the company in the world's second-largest aviation market, where orders have stalled amid U.S.-China trade tensions.