China Imposes Sanction on 7 Military Firms Over U.S. Arms Sales to Taiwan

In December, China imposed sanctions on seven U.S. military-industrial entities & their related senior executives in response to recent U.S. arms support for Taiwan.

Recently, the United States announced another significant package of military aid and arms sales to China’s Taiwan territory. The “National Defense Authorization Act for Fiscal Year 2025” has several unfavorable statements regarding China.

According to the Foreign Ministry of China, these major violations of the one-China principle and the three China-US joint communiqués, as well as interference in China’s domestic affairs, threaten China’s sovereignty and territorial integrity.

The sanctioned entities include Raytheon Australia, Oceaneering International Inc., Hudson Technologies Co., Raytheon Canada, Aerkomm Inc., Saronic Technologies, Inc., and Boeing subsidiary Insitu Inc. Previously, the U.S. approved $385 million in sales of weapons and now gives $571.3 Million to Taiwan for self-defense.

These sanctions will freeze these companies’ assets, including moveable & immovable assets, in the territory of China & prohibit Chinese entities from trading with sanctioned entities.

Sanctions depend on Articles 3, 4, 5, 6, 9, and 15 of the Law of the People’s Republic of China on Countering Foreign Sanctions.

This decision will go into effect on December 27, 2024, as stated by the Foreign Ministry.

All individuals and entities in China also can’t do business or conduct any financial transaction with sanctioned entities, according to media sources.

Background on Taiwan-China Relations

China has always considered Taiwan as a part of its territory. However, it never exerted pressure to control Taiwan. Taiwan also announced that only its residents can decide their fate, not China.

On December 5, 2024, China also imposed sanctions on 13 American defense entities & six executives as they sell arms to Taiwan.

“We urge the US to abide by the one-China principle and the provisions in the three China-US joint communiqués, especially the August 17 Communiqué of 1982, immediately stop arming Taiwan in any form, view China’s development and China-US relationship objectively and rationally, not to implement these negative articles concerning China and stop wrong words and deeds that harm China’s interests. China will continue to take all measures necessary to firmly safeguard our sovereignty, security, and development interests.”

Mao Ning, Chinese Foreign Ministry spokesperson

This current scenario escalates tensions between the two countries because China is feeling threatened by the aid that the U.S. sent to Taiwan. The situation is getting complicated because it involves historical tensions.

Several Chinese ministries & Govt. Departments condemn the U.S. action of enacting the “National Defense Authorization Act for Fiscal Year 2025.”

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According to a news source, Chen Binhua, a spokesperson for the “State Council’s Taiwan Affairs Office,” talked about this scenario, saying that Taiwan is China’s integral part and that this conflict purely falls under China’s internal affairs.

China will not tolerate this type of interference in internal matters next time, he added.