China has proceed with sanctions on 10 U.S. defense companies for their role in arms sales to Taiwan, marking the second round of punitive measures against American firms in less than a week.
On Thursday, January 2, China’s Ministry of Commerce revealed that subsidiaries of Lockheed Martin, General Dynamics, and Raytheon were added to its “Unreliable Entities List” due to their involvement in these arms transactions. As a result, these companies face bans on import and export activities in China, restrictions on new investments, and a prohibition on their senior executives from entering the country.
This action follows sanctions announced on Friday, which targeted seven U.S. military-industrial firms, including Boeing subsidiary Insitu, in response to American military assistance to Taiwan.
Taiwan remains a key point of tension in U.S.-China relations. Beijing claims the self-governed island as part of its territory and has pledged to reunify it, by force if necessary. While the U.S. does not officially recognize Taiwan, it is the island’s largest arms supplier and a strategic ally.
In December, U.S. President Joe Biden approved $571.3 million in defense support for Taiwan. A Chinese foreign ministry spokesperson condemned the U.S. actions as interference in China’s internal affairs, arguing that they undermine China’s sovereignty and territorial integrity.
China has intensified military and political pressure on Taiwan in recent years, conducting multiple rounds of large-scale military drills since Taiwanese President Lai Ching-te took office in May.
On the same day as the latest sanctions, China’s commerce ministry added 28 U.S. entities, mainly defense firms, to its Export Control List. This move bans the export of dual-use items to these entities, including General Dynamics, Lockheed Martin, and Boeing Defense, Space & Security. The ministry stated that the action was taken to safeguard national security, protect Chinese interests, and fulfill international non-proliferation obligations.
