China Imposes Sanctions on US Defence Firms Over Taiwan Arms Deal
China has imposed sanctions on 10 individuals and 20 US firms, including Boeing's St Louis production hub, freezing their assets in China and banning Chinese entities from conducting business with them. This move was announced by China's foreign ministry on 26 December 2025 in response to a Trump-approved arms sale to Taiwan worth over $10 billion, marking the largest arms deal in US–Taiwan history.
The arms package comprises eight agreements totaling 420 army tactical missile systems (Atacms), alongside medium-range missiles and drones. Among the sanctioned individuals is the founder of Anduril Industries and nine senior executives, all of whom are banned from entering China.
China's foreign ministry emphasized that the Taiwan issue is a core national interest and warned that provocations crossing its red line will provoke a strong response. It urged the US to cease arming Taiwan. However, the US remains legally obliged to provide Taiwan with defensive capabilities, and such arms sales continue to be a persistent point of friction with China.
Targeted companies in the sanctions include major defense contractors such as Boeing, Northrop Grumman Systems Corporation, and L3Harris Maritime Services.
