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China sanctions 20 US defence firms, 10 executives over Taiwan arms sale

China on Friday imposed sanctions on 20 US defence companies and 10 executives following Donald Trump’s approval of an $11.1 billion arms sale to Taiwan, warning of firm countermeasures over Taiwan issues.

December 27, 2025 / 04:39 IST
China, US, sanctions, Taiwan

China on Friday imposed sanctions on 20 US defence-related firms and 10 executives following Donald Trump’s approval of a large-scale arms sale to Taiwan.

The Guardian cited China’s Ministry of Foreign Affairs, stating the sanctions would freeze any assets held in China by the targeted individuals and companies, and prohibit domestic organisations and citizens from conducting business with them. Among the firms affected is Boeing’s production hub in St Louis, Missouri.

Earlier this month, Trump’s administration announced a major arms package to Taiwan valued at over USD 10 billion, including medium-range missiles, howitzers, and drones. Focus Taiwan reported the potential sale covers eight arms packages — HIMARS rocket systems, M109A7 howitzers, TOW 2B anti-tank missiles, FGM-148 Javelin anti-tank missiles, and anti-armour drones — at an estimated cost of USD 11.1 billion. Five of these packages are included in Taiwan’s NT$1.25 trillion (USD 39.85 billion) special defence budget pending legislative review, the Defence Ministry said.

PTI quoted the Chinese Foreign Ministry on Friday, saying Beijing would take countermeasures against “20 American military-related firms and 10 senior executives who have been involved in arming Taiwan in recent years.”

“The Taiwan question is at the very core of China’s core interests and the first red line that must not be crossed in China-US relations. Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China’s firm response,” it said.

The ministry urged the US to adhere to the one-China principle and to “stop the dangerous moves of arming Taiwan, stop undermining peace and stability in the Taiwan Strait, and stop sending wrong signals to ‘Taiwan independence’ separatist forces.”

Moneycontrol World Desk
first published: Dec 27, 2025 04:39 am

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