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

The penalties follow a record $11.1 billion U.S. arms notification to Taiwan that remains unexecuted pending U.S. processing, with a special defense budget still stalled in Taipei.

Overview

  • China’s Foreign Ministry said the sanctions take effect immediately, naming Boeing, Northrop Grumman, L3Harris, Vantor (formerly Maxar), VSE and others, along with 10 executives.
  • The measures prohibit new investment in China, restrict cooperation with Chinese entities, and allow for freezing assets within Chinese jurisdiction.
  • Beijing filed formal protests and said the PLA will intensify training and take firm steps to safeguard what it calls its sovereignty and territorial integrity.
  • U.S. officials have notified Congress of the roughly $11.1 billion package to Taiwan covering artillery, missiles, radars and support equipment, but execution still requires administrative steps and Taiwan’s special defense budget remains blocked in its legislature.
  • The sanctions announcement follows President Donald Trump’s signing of the FY2026 defense authorization law that includes about $1 billion for security cooperation with Taiwan.