BEIJING – Tensions between Beijing and Washington escalated as Chinese authorities announced sweeping sanctions against several individuals and 20 US defence companies in retaliation for US arms sales to Taiwan.
Among those targeted is Boeing’s St Louis division, a key hub for company’s defence manufacturing, along with major US military contractors including Northrop Grumman Systems Corporation and L3Harris Maritime Services. The sanctions freeze any assets held in China by listed firms and individuals and restrict Chinese organisations and citizens from conducting business with them.
Beijing also imposed travel bans on all sanctioned individuals, including founder of defence technology firm Anduril Industries and nine senior executives from the affected companies, effectively cutting them off from entry into the country.
China has very little direct business with US defence contractors and this action contrasts sharply with China’s long-standing role as a major buyer of Boeing’s civilian aircraft, showing economic and diplomatic risks of escalating dispute.
The sanctions come just days after Washington unveiled an unprecedented $11.1 billion weapons package for Taiwan, the largest arms sale ever approved for the self-ruled island, a move that triggered fury in Beijing.
China’s foreign ministry termed Taiwan as “core of China’s core interests” and warned that it represents first and most critical red line in China–US ties. China also cautioned that any actions it deems provocative on the Taiwan issue would be met with a strong and decisive response, urging US to immediately stop what it called “dangerous” efforts to arm the island.
Beijing claims Taiwan as its own territory, a position firmly rejected by Taipei. US is legally bound to assist Taiwan in maintaining its self-defence capabilities, a policy that remained unchanged across nine US administrations and remains a persistent source of friction with Beijing.
US State Department strongly objected to China’s sanctions, condemning Beijing’s retaliation against American companies involved in supporting Taiwan’s defence. US officials argued that the policy helps preserve peace and stability in the Taiwan Strait and called on China to end its military, diplomatic and economic pressure on Taiwan in favour of meaningful dialogue with Taipei.
Boeing reportedly been in talks to sell up to 500 civilian aircraft to Chinese airlines, a potential breakthrough in the world’s second-largest aviation market, where orders have stalled amid prolonged US-China trade tensions.
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