China imposes sanctions on US companies over arms sales to Taiwan

China imposed sanctions on Thursday against two US defence companies for their alleged arms sales to Taiwan, which China considers its own territory. The sanctions include freezing the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held in China as well as barring their management from entering the country.

General Dynamics operates several Gulfstream and jet aviation services operations in China, contributing to the nation’s aerospace technology sector. Meanwhile, the company plays a role in producing the Abrams tank, which Taiwan is acquiring to enhance its defense capabilities against potential aggression from China.

The company helps make the Abrams tank being purchased by Taiwan to replace outdated armour intended to deter or resist an invasion from China.

General Atomics produces the Predator and Reaper drones used by the US military. Chinese authorities did not go into details on the company’s alleged involvement with supplying arms to Taiwan. Beijing has long threatened such sanctions, but has rarely issued them as its economy reels from the COVID-19 pandemic, high unemployment and a sharp decline in foreign investment.

More from World

This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal Zohran Mamdani says he would arrest Netanyahu if he is elected as NYC mayor, calls Israeli PM 'war criminal'

With inputs from AP.