China has imposed sanctions on a number of US defence companies, including Boeing and Northrop Grumman, in response to a $10bn (£8bn) arms sale to Taiwan approved by President Donald Trump. The measures, announced by Beijing's foreign ministry on Friday, target 10 individuals and 20 US firms, freezing any assets they hold in China and barring Chinese organisations and individuals from doing business with them.
The sanctions follow the Trump administration's announcement last week of the largest package of arms sales to Taiwan in the history of US-China relations, including medium-range missiles and drones. The eight agreements comprising the total sale included 420 Army Tactical Missile Systems (Atacms), similar to those sent to Ukraine under the Biden administration.
Beijing considers Taiwan a breakaway province that must be reunified with the mainland, a stance rejected by the democratically governed island. The Chinese foreign ministry described the Taiwan issue as the “core of China’s core interests” and a “red line that cannot be crossed in China-US relations”, warning that any provocative actions would be met with a strong response.
Among those blacklisted are the founder of defence firm Anduril Industries and nine senior executives from sanctioned companies, who are now banned from entering China. Boeing, which produces fighter jets in St Louis, Missouri, where over 3,000 union workers went on strike earlier this year, is one of the firms affected. Other companies include Northrop Grumman Systems Corporation and L3Harris Maritime Services.
The US State Department defended the sales, stating they served US national, economic and security interests by supporting Taiwan's efforts to modernise its armed forces and maintain a credible defensive capability. However, such arms deals remain a persistent source of friction with China, which urged the US to cease what it called “dangerous” efforts to arm the island.
