China has imposed new sanctions on 20 U.S. defense firms and 10 executives over their arms sales to Taiwan, including Boeing’s (BA) St. Louis defense branch, Northrop Grumman (NOC), Red Cat Holdings (RCAT), and Anduril’s Palmer Luckey.
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“The Taiwan issue is the core of China’s core interests and the first red line that cannot be crossed in China-U.S. relations,” said a Chinese foreign ministry spokesperson on Friday.
Beijing Targets U.S. Defense Firms After Taiwan Weapons Sale
The defense firms will have their assets frozen in China and will be banned from transacting business with Chinese entities and individuals, while the executives will be blocked from entering China.
Last week, the Trump administration announced that it would provide Taiwan with $11.1 billion of weapons, including HIMARS rocket systems, drones, and Javelin anti-tank missiles. China’s foreign ministry responded by saying that the deal “severely undermines peace and stability in the Taiwan Strait.”
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