On Friday, the Chinese government imposed sanctions on seven companies following recent U.S. decisions to sell military equipment and provide aid to Taiwan, a self-governing island that China considers part of its territory.

The sanctions were also a reaction to the U.S. government’s newly approved annual defence spending bill, which, according to a statement from China’s Foreign Ministry, contains several provisions critical of China. China has raised objections to U.S. military aid for Taiwan and often announces sanctions on companies involved after such deals are made. However, these sanctions usually have little effect since American defence companies don't sell weapons or military equipment to China. The U.S. remains Taiwan's primary supplier of defence weapons.

According to a statement from China’s Foreign Ministry, seven companies are being sanctioned: Insitu Inc., Hudson Technologies Co., Saronic Technologies, Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc., and Oceaneering International Inc. The statement also mentions that "senior executives" from these companies are being targeted, though it does not provide their names. It said that whatever assets they own in China will be frozen and that Chinese persons and organizations are not allowed to do business with them. Last Monday, U.S. President Joe Biden approved up to $571 million for Taiwan's military education and training, as well as Defense Department supplies and services. The Defense Department also stated that military purchases totalling $295 million had been authorized.

The U.S. defence bill allocates funds to a more aggressive strategy toward China and increases military spending to $895 billion. Similar to how the U.S. has supported Ukraine, it creates a fund that might be used to deliver military supplies to Taiwan. Additionally, it broadens a restriction on U.S. military procurements of Chinese goods for military commissaries, including drone technology and garlic. Chinese Defense Ministry spokeswoman Zhang Xiaogang claimed earlier this week that the United States is exaggerating China's "so-called" threat in order to defend higher military spending. “U.S. military spending has topped the world and keeps increasing every year,” he said at a press conference. “This fully exposes the belligerent nature of the U.S. and its obsession with hegemony and expansion.”

The Foreign Ministry stated that U.S. actions go against agreements between the two countries regarding Taiwan. They interfere in China's internal affairs and harm its sovereignty and territorial integrity. Earlier this month, Taiwan’s government reported that China had sent numerous ships into nearby waters to simulate a blockade of the island. Taiwan criticized this as a threat to peace and stability and said it disrupted international shipping and trade. China has not confirmed or commented on these reported military actions.