Update: China Imposes Sanctions On U.S. Defense Firms Over Arms Sales To Taiwan

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China has sanctioned 10 U.S. defense companies for their involvement in arms sales to Taiwan, marking its second round of measures against American firms within a week.

The Ministry of Commerce announced on Thursday, January 2, that subsidiaries of Lockheed Martin, General Dynamics, and Raytheon have been added to China’s “Unreliable Entities List” due to their role in the arms deals.

As a result, these companies are now prohibited from conducting import and export activities in China, making new investments, and their senior executives are barred from entering the country.

This follows sanctions imposed last Friday on seven U.S. military-industrial companies, including Boeing subsidiary Insitu, in response to U.S. military support for Taiwan.

Taiwan remains a major point of tension in U.S.-China relations. Beijing views the self-governed island as part of its territory and has vowed to reunify it, potentially by force. While Washington does not officially recognize Taiwan, it is the island’s largest arms supplier and a key strategic partner.

In December, U.S. President Joe Biden approved $571.3 million in defense assistance for Taiwan. A Chinese foreign ministry spokesperson condemned the U.S. actions, calling them interference in China’s internal affairs and an affront to China’s sovereignty and territorial integrity.

China has ramped up both military and political pressure on Taiwan in recent years, conducting three rounds of large-scale military drills since Taiwanese President Lai Ching-te took office in May.

On the same day as the latest sanctions, China’s commerce ministry added 28 U.S. entities, mainly defense companies, to its Export Control List. This move bans the export of dual-use items to these entities, including General Dynamics, Lockheed Martin, and Boeing Defense, Space & Security.

The ministry stated that the action aims to safeguard national security, protect Chinese interests, and uphold international non-proliferation commitments.

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