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China Imposes Sanctions on US Defence Firms Over Taiwan Arms Deal image from theguardian.com
Image from theguardian.com

China Imposes Sanctions on US Defence Firms Over Taiwan Arms Deal

Posted 26th Dec 2025

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China has imposed sanctions on 10 individuals and 20 US defense firms in response to a large US arms sale to Taiwan. The sanctions include freezing assets of the targeted firms in China, banning Chinese entities from dealing with them, and prohibiting the sanctioned individuals from entering China. Among the sanctioned companies is Boeing, including its St. Louis production hub, where over 3,000 local union workers went on strike earlier in the year.

These measures follow Donald Trump's approval of a US arms package to Taiwan valued at over $10 billion. The package is the largest-ever US-Taiwan weapons sale and comprises eight arms agreements totaling 420 Army Tactical Missile Systems (ATACMS), which are similar to those sent to Ukraine, as well as medium-range missiles and drones.

US officials frame the sale as serving national, economic, and security interests by helping modernize Taiwan's armed forces and maintaining regional stability and balance. China has characterized the Taiwan issue as its core interest and a red line in China–US relations. It warned that provocative actions crossing this line would be met with a strong response and urged the US to halt the dangerous arms sales to Taiwan.

The sanctions list includes the founder of Anduril Industries and nine senior executives from the sanctioned firms.

Sources
The Guardian Logo
https://www.theguardian.com/world/2025/dec/26/china-imposes-sanctions-on-us-defence-firms-over-taiwan-arms-deal
* This article has been summarised using Artificial Intelligence and may contain inaccuracies. Please fact-check details with the sources provided.