China Imposes Sanctions on US Defense Firms Following Taiwan Arms Sale

China's Ministry of Foreign Affairs has announced sanctions against a number of United States defence firms and prominent individuals in response to recent arms sales to Taiwan. This latest action is seen as a retaliatory measure following the approval of an $11.1 billion weapons package by the Trump administration, which is among the largest ever committed to the self-governing island that Beijing considers part of its territory.

On December 26, 2025, the sanctions were revealed, targeting 20 defence companies and 10 individuals. The ministry's statement warned that any provocative actions regarding Taiwan would provoke a strong response from China, urging the US to halt what it described as “dangerous” efforts to arm the island.

The sanctioned firms include well-known companies such as Boeing's St Louis facility, Northrop Grumman Systems Corporation, and L3Harris Maritime Services. The sanctions freeze the assets of these companies within China and prohibit domestic entities from collaborating with them. Furthermore, the personal assets of the identified individuals will also be seized, and they will be barred from entering Chinese territory.

Among those affected by the sanctions are the founder of the defence firm Anduril Industries and nine senior executives from the sanctioned companies. The sanctions are effective immediately.

The United States is legally obliged to provide Taiwan with means for self-defence, a stance that has contributed to rising tensions between Washington and Beijing. The arms deal recently announced by President Donald Trump includes the sale of 82 High Mobility Artillery Rocket Systems (HIMARS) and 420 Army Tactical Missile Systems (ATACMS), with a combined value exceeding $4 billion. These systems are comparable to military aid given to Ukraine for its defence against Russian aggression.

In addition to these advanced missile systems, the package encompasses 60 self-propelled howitzer artillery systems and associated equipment, also valued at over $4 billion, as well as drones worth more than $1 billion.

Taiwan's Ministry of National Defence expressed gratitude towards the US for its support, emphasizing the importance of maintaining adequate self-defence capabilities and enhancing deterrence in the region. The ongoing military cooperation between the US and Taiwan is a critical point of contention in Sino-American relations, which have been strained by trade disputes and other geopolitical issues.

The situation surrounding Taiwan remains one of the core interests for Beijing, with the Chinese government consistently asserting that the island must eventually reunify with the mainland. This position has been met with resistance from Taiwan's democratically elected leadership, which seeks to uphold its autonomy.

As tensions escalate, the international community is closely monitoring developments in this ongoing situation, particularly as both sides continue to assert their respective positions regarding Taiwan and military support.