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China Sanctions 20 U.S. Defense Firms and 10 Executives Over Taiwan Arms Deal

Beijing issues asset freezes with business prohibitions as a formal rebuke to a proposed $11.1 billion U.S. weapons package still awaiting congressional review.

Overview

  • China’s foreign ministry said the measures freeze any China-held assets, bar Chinese entities from transactions with those listed, and impose entry bans covering the mainland, Hong Kong and Macau, effective December 26.
  • The sanctioned entities include Boeing’s St. Louis defense unit, Northrop Grumman Systems and L3Harris Maritime Services, while named individuals include Anduril founder Palmer Luckey.
  • Beijing framed the move as retaliation for Washington’s newly announced Taiwan arms package and reiterated that the Taiwan issue is the first red line in ChinaU.S. relations.
  • The U.S. package outlined last week features HIMARS launchers, ATACMS missiles, self-propelled howitzers and loitering-munitions drones for Taiwan’s defense.
  • Early assessments by multiple outlets say the sanctions’ practical impact is likely limited because many targeted firms have little or no business presence in China.