China Sanctions US Firms Over Taiwan Military Support

China has sanctioned seven US corporations in response to Washington’s recent acceptance of a $571.3 million military aid package for Taiwan. Beijing argues the package violates its sovereignty and territorial integrity.

Last Friday, US President Joe Biden authorized defense assistance to Taiwan, a self-governing island that China deems part of its territory.

Washington’s measures “interfere in China’s internal affairs, and undermine China’s sovereignty and territorial integrity,” the Chinese foreign ministry stated in a statement Friday, December 27.

The ministry questioned the US defense budget for 2025, which includes a security cooperation effort with Taiwan and calls for more defense industry engagement with Taipei.

The sanctions, which are effective immediately, target Insitu, Hudson Technologies, Saronic Technologies, Aerkomm, and Oceaneering International, as well as the Canadian and Australian subsidiaries of Raytheon.

China’s steps include freezing the targeted companies’ assets within its jurisdiction and barring them from doing business with Chinese entities or individuals.

While the United States does not diplomatically recognize Taiwan, it remains the island’s greatest arms supplier and strategic ally.

China has increased military pressure on Taiwan, conducting three major drills since Taiwanese President Lai Ching-te took office in May. Beijing has also stated that if necessary, it will use force to seize control of Taiwan.

Mao Ning, a Chinese foreign ministry spokesperson, warned that US backing for Taiwan “will only burn itself.” “China will continue to take all necessary measures to firmly defend its sovereignty, security, and development interests,” Mao stated during a press conference.

Friday’s restrictions follow an earlier announcement this month in which Beijing targeted 13 US corporations for military sales to Taiwan.