China sanctions US defense firms for selling weapons to Taiwan

Asia-Pacific, News, US May 21, 2024 , by IRIA No Comments

China has sanctioned three more U.S.-based defense giants, General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space & Security, on May 20, 2024, over their sales of arms to Taiwan.

According to China’s Commerce Ministry, the firms that have been added to Beijing’s “unreliable entities”. While being on the list, the firms will be barred from engaging in China-related import or export activities, and are forbidden to make new investments in China.

China’s state-run Xinhua News reported that “Senior executives of the companies are prohibited from entering China, while their work permits will be revoked.”

The sanctions come at a time when the self-ruled island inaugurated its new president.

Sanctions coincide with Taiwan’s presidential inauguration

The announcement coincided with Lai Ching-te’s inauguration as president of Taiwan on Monday. His swearing-in ceremony took place amidst escalating military pressure from China, highlighting the tense and challenging environment facing the democratic island nation.

In his inaugural speech, Lai Ching-te called on China to cease its military and political threats. He emphasized that peace was the only viable option and urged Beijing to respect the choices made by the Taiwanese people.

Taiwan President-elect Lai Ching-te, of Democratic Progressive Party's (DPP) and his running mate Hsiao Bi-khim — ^{Taiwan’s President Lai Ching-te and Hsiao Bi-khim wave as they hold a press conference, following the victory in the presidential elections, in Taipei, Taiwan January 13, 2024. (Image Credit: Reuters/Ann Wang)}

“I also want to urge China to stop intimidating Taiwan politically and militarily, and to take on the global responsibility with Taiwan to work hard on maintaining peace and stability across the Taiwan Strait and in the region, to ensure the world is without the fear of war breaking out,” he said.

“We also want to declare this to the world: Taiwan makes no concessions on democracy and freedom. Peace is the only option and prosperity is our goal for long-term peace and stability.”

US support for Taiwan

The U.S. defense firms have been actively engaged in providing weapons to Taiwan, as the tension increase between Beijing and Taipei. The United States approved a huge military aid package for Taipei last month, including $1.9 billion for replenishing its military equipment and training. Another $2 billion will be used for “foreign military financing” for countries in the region.

Earlier this year, China sanctioned several other U.S. defense firms including BAE Systems, the BAE Systems Land and Armament, Alliant Techsystems Operation, AeroVironment, ViaSat, and Data Link Solutions.

Taiwan Stinger missile launcher — *^{Taiwan Marines using dual-mounted Stinger (DMS) missile launcher. (Image Credit: Republic of China Navy)}*

Under the sanctions imposed by Beijing, all the assets in China owned by the companies and associated with the sanctioned firms have been frozen. China has also prohibited all sanctions organizations and their associated individuals from engaging in business transactions, as stated by the Foreign Ministry in an online announcement.

The foreign ministry statement at that time added that China urges the United States to abide by the one-China principle and the three China-U.S. joint communique, observe international law and the basic norms governing international relations, stop arming Taiwan, and stop targeting China with illegal unilateral sanctions, the spokesperson said, noting that “otherwise there will be a strong and resolute response from China.”