China Sanctions U.S. Companies Over Military Aid to Taiwan

China has sanctioned seven American companies in response to a $571.3 million military aid package to Taiwan. Beijing, which considers Taiwan part of its territory, accused Washington of undermining its sovereignty and interfering in its internal affairs.

The controversy began last week when U.S. President Joe Biden approved a significant military assistance package for Taiwan. This $571.3 million drawdown is intended to bolster Taiwan’s defense capabilities amid increasing pressure from China.

This military aid is part of Washington’s broader strategy to support Taiwan’s security, a move that Beijing views as a direct challenge to its territorial claims.

The Chinese foreign ministry expressed strong disapproval, stating that such actions “interfere in China’s internal affairs and undermine China’s sovereignty and territorial integrity.”

In retaliation, China announced sanctions on seven American companies involved in the defense industry. These include: Insitu, Hudson Technologies, Saronic Technologies, Aerkomm, Oceaneering International and Subsidiaries of Raytheon in Canada and Australia.

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The sanctions, effective immediately, include freezing the companies’ assets within China and prohibiting them from conducting business with Chinese individuals or organizations. This is a bold move, reflecting China’s resolve to counter U.S. involvement in what it considers its domestic affairs.

Beijing has also criticized the U.S. defense budget for 2025, which includes provisions for a security cooperation initiative with Taiwan. These initiatives aim to enhance military ties and promote collaboration between defense industries in Washington and Taipei.

China has not ruled out the use of force to bring the island under its control, and its military activities around Taiwan have grown more aggressive. Since Taiwanese President Lai Ching-te assumed office in May, Beijing has conducted three large-scale military drills near the island, signaling its readiness to assert control if necessary.

Chinese foreign ministry spokeswoman Mao Ning issued a stern warning, suggesting that U.S. support for Taiwan is a risky gamble. “The United States’ support for Taiwan will only burn itself,” she said during a press conference. Mao emphasized that China would continue to take “all necessary measures” to protect its sovereignty and security interests.