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China sanctions 20 US defense companies
and 10 executives over massive arms sales to Taiwan
[December 27, 2025]
BEIJING (AP) — Beijing imposed sanctions on Friday against 20
U.S. defense-related companies and 10 executives, a week after
Washington announced large-scale arms sales to Taiwan.
The sanctions entail freezing the companies’ assets in China and banning
individuals and organizations from dealing with them, according to the
Chinese foreign ministry.
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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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The
companies include Northrop Grumman Systems Corporation, L3Harris
Maritime Services and Boeing in St. Louis, while defense firm
Anduril Industries founder Palmer Luckey is one of the
executives sanctioned, who can no longer do business in China
and are barred from entering the country. Their assets in the
East Asian country have also been frozen.
The announcement of the U.S. arms-sale package, valued at more
than $10 billion, has drawn an angry response from China, which
claims Taiwan as its own and says it must come under its
control.
If approved by the American Congress, it would be the
largest-ever U.S. weapons package to the self-ruled territory.
“We stress once again that 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-U.S. relations,” the Chinese foreign
ministry said in a statement on Friday. “Any company or
individual who engages in arms sales to Taiwan will pay the
price for the wrongdoing."
The ministry also urged the U.S. to stop what it called “the
dangerous moves of arming Taiwan.”
Taiwan is a major flashpoint in U.S.-China relations that
analysts worry could explode into military conflict between the
two powers. China says that the U.S. arms sales to Taiwan would
violate diplomatic agreements between China and the U.S.
China’s military has increased its presence in Taiwan’s skies
and waters in the past few years, holding joint drills with its
warships and fighter jets on a near-daily basis near the island.
Under the American federal law, the U.S. is obligated to assist
Taiwan with its self-defense, a point that has become
increasingly contentious with China. Beijing already has
strained ties with Washington over trade, technology and other
human rights issues.
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