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4d ago

China Sanctions 20 U.S. Defense Firms, 10 Executives Over Record Taiwan Arms Package

Beijing’s move signals retaliation to Washington’s record Taiwan arms plan with limited practical effect.

FILE - A low-cost autonomous cruise missile Barracuda 500, jointly manufactured by U.S Anduril and Taiwan''s National Chung-Shan Institute of Science and Technology, isndisplayed during the Taipei Aerospace & Defense Technology Exhibition (TADTE) at Nangang Exhibition Center in Taipei, Taiwan, Sept. 20, 2025. (AP Photo/Chiang Ying-ying, File)
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U.S. and Chinese flags are seen in this illustration taken March 20, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • China’s foreign ministry announced asset freezes, business bans inside China and travel restrictions for the mainland, Hong Kong and Macau targeting 20 companies and 10 executives.
  • Named firms include Boeing’s St. Louis defense unit, Northrop Grumman Systems and L3Harris Maritime Services, while listed individuals include Anduril founder Palmer Luckey.
  • Beijing said the measures respond to a proposed ~$11.1 billion U.S. arms package for Taiwan that features HIMARS, ATACMS, self-propelled howitzers and drones and still requires Congressional review.
  • Multiple reports described the sanctions as largely symbolic because many targets have little China exposure, though the step carries political and potential commercial risks.
  • The U.S. objected and framed the sales as supporting Taiwan’s self‑defense under longstanding policy as China reiterated that Taiwan is its top red line and urged Washington to halt the transfers.