China has intensified its response to U.S. arms sales to Taiwan, imposing sanctions on 10 American defense firms, including subsidiaries of Lockheed Martin, General Dynamics, and Raytheon. This marks the second wave of measures targeting U.S. companies in less than a week.
The Ministry of Commerce announced on January 2 that the sanctioned firms have been added to China’s "Unreliable Entities List." As a result, these companies are barred from engaging in import and export activities with China, prohibited from making new investments, and their senior executives are denied entry into the country.
This action follows sanctions imposed last week on seven other U.S. military-industrial companies, including Boeing subsidiary Insitu, in response to Washington’s continued military support for Taiwan.
Taiwan remains a flashpoint in U.S.-China relations. Beijing considers the self-governing island part of its territory and has vowed to achieve reunification, using force if necessary. While the U.S. does not officially recognize Taiwan as a separate nation, it is the island’s largest arms supplier and a critical ally.
In December, U.S. President Joe Biden approved a $571.3 million defense aid package for Taiwan, further straining ties between Beijing and Washington. A Chinese foreign ministry spokesperson condemned the U.S. actions as interference in China’s domestic affairs, stating they "violate China’s sovereignty and territorial integrity."
China has also ramped up its military and political pressure on Taiwan, conducting three large-scale military exercises since Taiwanese President Lai Ching-te took office in May 2024.
On the same day as the latest sanctions, China’s Ministry of Commerce added 28 U.S. entities, predominantly defense-related firms, to its Export Control List. This measure prohibits the export of dual-use items to these entities, citing the need to protect national security, safeguard Chinese interests, and uphold non-proliferation commitments.
The sanctioned companies include General Dynamics, Lockheed Martin Corporation, and Boeing Defense, Space & Security. The ministry stated that these measures are part of China’s broader strategy to counter perceived threats to its sovereignty and security.
