China has imposed sanctions on seven U.S. companies in response to Washington’s recent approval of a $571.3 million military aid package for Taiwan. Beijing argues that the package violates its sovereignty and territorial integrity.
Last week, U.S. President Joe Biden authorized the defense assistance for Taiwan, a self-governing island that China views as part of its territory.
In a statement on December 27, China’s foreign ministry condemned the U.S. actions, saying they “interfere in China’s internal affairs and undermine China’s sovereignty and territorial integrity.”
The ministry also criticized the 2025 U.S. defense budget, which includes a security cooperation initiative with Taiwan, and proposals for increased defense collaboration with Taipei.
The sanctions, which are effective immediately, target companies such as Insitu, Hudson Technologies, Saronic Technologies, Aerkomm, and Oceaneering International, along with the Canadian and Australian subsidiaries of Raytheon.
China’s measures include freezing the assets of these companies within its jurisdiction and banning them from doing business with Chinese entities or individuals.
While the U.S. does not diplomatically recognize Taiwan, it remains the island’s largest arms supplier and strategic ally.
In response to U.S. support, China has ramped up military pressure on Taiwan, conducting three major drills since Taiwanese President Lai Ching-te took office in May. Beijing has also reiterated its readiness to use force if necessary to assert control over Taiwan.
Chinese foreign ministry spokesperson Mao Ning warned that U.S. support for Taiwan “will only burn itself.” She added that China would continue to take “all necessary measures” to safeguard its sovereignty, security, and development interests.
These latest sanctions follow an earlier announcement in December, when China targeted 13 U.S. firms involved in arms sales to Taiwan.
