China imposed sanctions on 20 US defence firms over $10billion Taiwan arms sale
- In Reports
- 12:18 PM, Dec 27, 2025
- Myind Staff
China on Friday announced strict sanctions against 20 United States defence-related companies and 10 senior executives in response to a major arms sale approved by the US for Taiwan. The Chinese government said the move was necessary after Washington cleared weapons sales worth more than $10 billion to the self-ruled island, which Beijing considers part of its territory. The sanctions were announced by China’s foreign ministry and will come into effect immediately.
In an official statement, the Chinese foreign ministry said the US decision to sell weapons to Taiwan seriously violated the one-China principle and the three China–US Joint Communiques. It said the move interfered in China’s internal affairs and damaged China’s sovereignty and territorial integrity. The ministry stressed that the Taiwan issue is at the core of China’s national interests and warned that Beijing would respond firmly to any actions that challenge its position.
The foreign ministry said that under China’s Anti-Foreign Sanctions Law, all assets owned by the sanctioned companies and individuals within China will be frozen. It also stated that organisations and individuals in China are prohibited from engaging in any transactions, cooperation, or other activities with these companies and executives. In addition, the 10 senior executives named in the sanctions will face restrictions related to China.
The ministry said, “Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China’s firm response.” It further warned that companies and individuals involved in arms sales to Taiwan would face consequences for their actions. The statement added, “Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing.”
China also made it clear that its determination on the Taiwan issue should not be underestimated. The spokesperson said, “No country or force shall ever underestimate the resolve, will and ability of the Chinese government and people to safeguard national sovereignty and territorial integrity.” The ministry urged the United States to stop selling weapons to Taiwan and to act cautiously to avoid further escalation in the Taiwan Strait.
Among the US defence firms targeted by the sanctions are Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing’s St. Louis operations, Gibbs & Cox, VSE Corporation, Sierra Technical Services, Red Cat Holdings, Teal Drones, ReconCraft, Epirus, Dedrone Holdings, Area-I, Blue Force Technologies, Dive Technologies, Rhombus Power and Lazarus Enterprises. Several other companies linked to defence and military technology were also included in the list released by China.
The sanctions also apply to 10 senior executives from these companies. One of the prominent names mentioned is Palmer Luckey, the founder of defence technology company Anduril Industries. According to the Chinese statement, all assets belonging to these individuals within China will be restricted, and they will face limits on conducting activities connected to China.
China’s announcement comes shortly after the US State Department approved a major arms package for Taiwan last week. According to the US announcement, the package includes various military systems such as medium-range missiles, mobile rocket artillery systems, drones and howitzers. Reports from Taiwan suggested that the proposed deal includes eight separate weapons packages with an estimated total value of around $11.1 billion.
The arms sale still requires approval from the US Congress before it can be finalised. If cleared, it would be one of the largest weapons deals ever offered by the United States to Taiwan. China has consistently opposed such sales, arguing that they threaten regional peace and stability and undermine relations between Beijing and Washington.
In its statement, the Chinese foreign ministry called on the United States to honour its commitments and stop actions that it said fuel tensions. The spokesperson said China would take “resolute measures” to protect its sovereignty and security interests if necessary. Beijing has repeatedly stated that foreign military support for Taiwan crosses a red line.
The Taiwan issue remains one of the most sensitive points in relations between China and the United States. While China insists that Taiwan is an inseparable part of its territory, the US maintains unofficial ties with the island and provides military support under the Taiwan Relations Act. Beijing views this support as a violation of agreements reached between the two countries.
China has warned that continued arms sales to Taiwan will further strain ties with the US. The latest sanctions highlight Beijing’s strong opposition to what it sees as interference in its internal affairs and reflect the growing tensions between the world’s two largest economies over security and sovereignty issues in the Asia-Pacific region.

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