China Imposes Sanctions on US Defence Firms Over Taiwan Arms Deal

China on Friday announced sanctions against 20 US defence companies and 10 senior executives in retaliation for Washington’s approval of a large arms sales package to Taiwan, escalating tensions between the two global powers over the sensitive Taiwan issue.

In a statement, China’s Ministry of Foreign Affairs of China said the move was a direct response to the Trump administration’s approval of a USD 11.1 billion arms sale to Taiwan, the largest such package cleared during former US President Donald Trump’s tenure.

Beijing described Taiwan as “China’s Taiwan region” and warned that any actions challenging China’s position on the island would be met with a firm response.

‘Red Line’ in China–US Relations

“The Taiwan question is at the very core of China’s core interests and the first red line that must not be crossed in China-US relations,” the Chinese Foreign Ministry said, adding that individuals and firms involved in supplying weapons to Taiwan would face countermeasures.

China also urged the United States to adhere to the one-China principle, calling on Washington to stop arming Taiwan and to refrain from what it described as actions that undermine peace and stability in the Taiwan Strait.

The ministry reiterated that China would continue to take “resolute measures” to safeguard its sovereignty, security, and territorial integrity.

Largely Symbolic Sanctions

Analysts noted that the sanctions are largely symbolic, as most of the targeted US defence firms have little to no business exposure in China. However, the move signals Beijing’s strong political opposition to continued US military support for Taiwan.

The proposed arms package, which still requires approval from the US Congress, is widely expected to pass due to strong bipartisan backing for Taiwan in Washington.

Taiwan Security Concerns

The arms sale comes amid growing concerns in Taipei over the possibility of a Chinese military action against the self-governing island, which Beijing considers part of its territory.

If approved, the package would exceed the USD 8.4 billion worth of arms sold to Taiwan during the administration of former US President Joe Biden, according to earlier reports by the New York Times.

Observers say the scale of the proposal is also intended to reassure US lawmakers critical of Trump’s China policy, particularly amid fears that trade and economic negotiations with Beijing could dilute Washington’s security commitments to Taiwan.