China Sanctions US Defense Companies
China has announced sanctions against three US defense companies for their involvement in arms sales to Taiwan. The move follows the inauguration of Lai Ching-te as the new president of the self-ruled island, which Beijing considers part of its territory.
The sanctioned companies, General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space & Security, will be prohibited from engaging in China-related import or export activities and making new investments in the country. They will also be barred from seeking new business licenses in China and will have their work permits revoked.
China’s commerce ministry said the sanctions are intended to punish the companies for selling weapons to Taiwan, which Beijing views as a major security threat. The move is seen as a warning to other countries and companies that may be considering supplying arms to Taiwan.
The United States remains Taiwan’s most important partner and biggest arms supplier, despite having switched diplomatic recognition to Beijing in 1979. Washington approved a huge military aid package for Taipei last month, including $1.9 billion for replenishing its military equipment and training. Beijing has condemned the package, saying it will increase the risk of conflict across the Taiwan Strait.
The sanctions imposed by China are the latest in a series of measures taken by Beijing to pressure Taiwan and discourage it from pursuing independence. Taiwan’s new president, Lai Ching-te, has pledged to maintain close ties with the United States and strengthen the island’s defenses against China.
