'Red line that can't be crossed': China sanctions 20 US defence firms over arms sales to Taiwan

China’s Foreign Ministry on Friday hit 20 US defence firms, including Boeing, with sanctions in retaliation for US President Donald Trump’s approval of a large package of arms sales to Taiwan. The ministry noted that the measures are being taken against 10 individuals and 20 US firms, including Boeing’s production hub at St Louis in Missouri.

In accordance with the sanctions, Beijing would freeze any assets the companies and individuals hold in China and bar domestic organisations and individuals from doing business with them. Last week, the Trump administration announced a massive package of arms sales to Taiwan valued at more than $10 billion.

The package would include medium-range missiles and drones. It was the largest weapons sale in the history of the bilateral relationship between Taiwan and the United States. It is pertinent to note that China considers the democratically governed island region as its own. Meanwhile, Taipei’s ruling regime has always rejected China’s claim over the island.

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10 individuals facing the sanctions

Meanwhile, individuals on the Chinese sanctions list include the founder of the defence firm Anduril Industries and nine senior executives from the sanctioned firms. All of them are banned from entering China, the ministry added. It is important to note that Boeing produces fighter jets in St Louis, where more than 3,000 union workers went on strike over pay this year.

Other companies targeted by the Chinese sanctions include Northrop Grumman Systems Corporation and L3Harris Maritime Services. “The Taiwan issue is the core of China’s core interests and the first red line that cannot be crossed in China-US relations. Any provocative actions that cross the line on the Taiwan issue will be met with a strong response from China,” a Chinese foreign ministry spokesperson said in a statement on Friday.

Beijing urged Washington to cease “dangerous” efforts to arm the island. The US is bound by law to provide Taiwan with the means to defend itself. However, such arms sales are a persistent source of friction with China.

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The state department said at the time of the Taiwan arms sale that it served “US national, economic and security interests by supporting the recipient’s continuing efforts to modernise its armed forces and to maintain a credible defensive capability”.

“The proposed sale[s] will help improve the security of the recipient and assist in maintaining political stability, military balance and economic progress in the region,” various similar statements issued on each of the agreements said.