China sanctions 20 US defence firms over $11.1 billion Taiwan arms deal: The flashpoint and what comes next

A payload pod housing a synthetic aperture radar made by U.S. company IMSAR is mounted under an APEX aircraft in Taitung, Taiwan, October 13, 2025. REUTERS/Ann Wang

China imposed sanctions on 20 US defense firms and 10 executives after the Trump administration approved a record $11.1 billion arms sale to Taiwan, warning the US to stop arming Taiwan and vowing firm action to protect its sovereignty and core interests.

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China on Friday announced sanctions against 20 US defence companies and 10 senior executives, reacting sharply to the Trump administration’s approval of a record USD 11.1 billion arms sales package to Taiwan.

In a statement, China’s Foreign Ministry said the move was a direct response to what it described as large-scale US arms sales to “China’s Taiwan region.” Beijing warned that any attempt to challenge China on the Taiwan issue would trigger a firm response.

“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,” the ministry said. “Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China’s firm response.”

China urged the US to respect the One China principle and called on Washington 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.”

The Foreign Ministry said China would continue to take resolute measures to safeguard national sovereignty, security, and territorial integrity.

The sanctions are widely seen as symbolic, as most of the targeted US defence firms have little or no business presence in China.

The proposed arms sales, which still require approval by the US Congress, come amid rising concerns in Taipei over a possible military move by China, which claims Taiwan as part of its territory. If approved, the package would exceed the USD 8.4 billion worth of arms sold to Taiwan during the Biden administration, according to a report by The New York Times.

The scale of the deal is also expected to reassure China hawks in Washington who have questioned Donald Trump’s commitment to Taiwan as he simultaneously seeks trade and economic agreements with Beijing.