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

Beijing says the measures answer a US$11.1 billion Taiwan arms notification that still awaits procedural steps.

Overview

  • China’s foreign ministry announced immediate penalties under its anti-foreign sanctions law, imposing investment bans, cooperation restrictions and asset freezes on the listed companies and individuals.
  • Boeing, Northrop Grumman Systems, L3Harris and VSE are among the sanctioned firms, and named executives include Palmer Luckey of Anduril, with some reports noting travel bans for individuals.
  • Beijing reiterated that Taiwan is a core interest and a red line in ChinaU.S. relations and warned of firm countermeasures, with the PLA pledging intensified training.
  • The U.S. notified Congress on December 18 of roughly US$11.1 billion in prospective sales that include HIMARS launchers and ATACMS missiles, but execution still requires additional U.S. administrative actions and Taiwan’s budget approval.
  • China instructed Chinese entities and individuals not to conduct business with the sanctioned parties and stated that any assets within its jurisdiction would be frozen.