China sanctions US-linked companies over arms sales to Taiwan

China imposed sanctions on seven companies on Friday after the recent US announcements of military sales and aid to Taiwan, the self-governing island that China claims as part of its territory.

The move also comes in response to the recent approval of the U.S. government’s annual defense spending bill, which a Chinese Foreign Ministry statement said “includes multiple negative sections on China.” The US is the main supplier of weapons to Taiwan for its defense.

China claims democratically governed Taiwan as its territory and has never renounced the use of force to bring the island under its control. However, Taiwan strongly objects to China’s sovereignty claims and says only the island’s people can decide their future.

The US is bound by law to provide Taiwan with the means to defend itself, despite the lack of formal diplomatic ties between Washington and Taipei. China urges the U.S. to abide by the one-China principle and stop arming Taiwan, the spokesperson Mao Ning said, adding that Beijing will “take all necessary measures” to safeguard its security and interests.

China objects to American military assistance for Taiwan and often imposes sanctions on related companies after a sale or aid package is announced. The sanctions generally have a limited impact, because American defense companies don’t sell arms or other military goods to China.

The seven companies being sanctioned are Insitu Inc., Hudson Technologies Co., Saronic Technologies, Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc. and Oceaneering International Inc., the Foreign Ministry statement said. It said that “relevant senior executives” of the companies are also sanctioned, without naming any.

Any assets they have in China will be frozen, and organisations and individuals in China are prohibited from engaging in any activity with them, it said.

U.S. President Joe Biden last week authorized up to $571 million in Defense Department material and services and military education and training for Taiwan. Separately, the Defense Department announced that $295 million in military sales had been approved.

The US defense bill boosts military spending to $895 billion and directs resources toward a more confrontational approach to China. It establishes a fund that could be used to send military resources to Taiwan in much the same way that the U.S. has backed Ukraine. It also expands a ban on U.S. military purchases of Chinese products ranging from drone technology to garlic for military commissaries.

Zhang Xiaogang, a Chinese Defense Ministry spokesperson, said earlier this week that the U.S. is hyping up the “so-called” threat from China to justify increased military spending.

“U.S. military spending has topped the world and keeps increasing every year,” he said at a press conference. ”This fully exposes the belligerent nature of the U.S. and its obsession with hegemony and expansion.”

The Foreign Ministry statement said the U.S. moves violate agreements between the two countries on Taiwan, interfere in China’s domestic affairs and undermine the nation’s sovereignty and territorial integrity.

With inputs from agencies.