NewsChina sanctions U.S. firms amid Taiwan arms deal tensions

China sanctions U.S. firms amid Taiwan arms deal tensions

The Chinese authorities have imposed sanctions on American arms companies and their representatives. This is a response to Washington's approval of the Taiwanese president's entry into U.S. territory and the sale of American weapons to Taipei. The restrictions cover 13 companies.

China has imposed sanctions on American companies [in the photo: Chinese leader Xi Jinping and U.S. President Joe Biden]
China has imposed sanctions on American companies [in the photo: Chinese leader Xi Jinping and U.S. President Joe Biden]
Images source: © Getty Images | Lintao Zhang

The U.S. State Department agreed on November 29 to sell Taiwan, among other things, spare parts and components for F-16 multirole aircraft and radar systems and similar equipment.

The next day, Taiwanese President Lai Ching-te began a trip to several countries and territories in the Pacific. He started from the U.S. state of Hawaii, then visited the Marshall Islands, Tuvalu, and Palau, and on Thursday, he is visiting Guam - a U.S. territory in the western Pacific Ocean.

In response, Beijing emphasized that both decisions "undermine the sovereignty and territorial integrity" of China. The Chinese Ministry of Foreign Affairs announced that 13 American defense entities and representatives of these firms are subject to sanctions. Six of them have been banned from entering China and have had their assets frozen. Chinese companies and citizens are prohibited from engaging in any transactions with entities subject to sanctions.

China considers Taiwan a rebellious province and protests against maintaining any formal contacts with Taipei.

Taiwan welcomes U.S. decision

Taiwanese authorities warmly welcomed the U.S. State Department's Friday decision. The Ministry of Defense in Taipei expressed hope that the first transactions will be completed by the end of 2024. Washington's decision was also emphasized as helping maintain the readiness of Taiwan's F-16 fleet and "build dependable defence forces."

In November, American authorities announced they are considering selling Taiwan military equipment worth $2 billion CAD. The package is expected to include advanced air defence missile systems used by Ukraine in its defensive war with Russia.

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