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‘Pay price for wrongdoing’: China Sanctions 20 US defence firms after Trump approves Taiwan arms sale

China on December 27 announced sanctions on 20 U.S. defense companies and 10 senior executives, including Palmer Luckey of Anduril Industries, following the Trump administration’s approval of an $11.1 billion arms package for Taiwan.

by Aditi, December 27, 2025 , https://www.financialexpress.com/world-news/pay-price-for-wrongdoing-china-sanctions-20-us-defence-firms-after-trump-approves-taiwan-arms-sale/4089711/

China announced sanctions against 20 US defence companies and 10 top executives on Friday — the latest in a series of tit-for-tat measures. The announcement came soon after the Trump administration approved a major weapons sale to Taiwan. The sanctions list includes well-known companies like Northrop Grumman and Boeing’s defence unit in St. Louis, as well as Palmer Luckey, founder of Anduril Industries.

China said it will freeze the assets of these companies in the country, block them from doing business with Chinese organisations, and prevent the executives from entering mainland China, Hong Kong, and Macau, according to a report from the Wall Street Journal. Both Washington and Beijing have also announced export controls, investment restrictions, visa and travel bans and curtailed use of sensitive technology over the past year. 

The Chinese Foreign Ministry said the US arms sale “interferes in China’s internal affairs and seriously undermines China’s sovereignty and territorial integrity.” The sanctions were announced on December 27, and according to a Global Times report, took immediate effect. Officials said the US decision went against the one-China principle and the three China-US Joint Communiques. 

China sanctions US defence firms over Taiwan arms sale

Under the new measures, China has imposed sanctions on 20 US defence-related companies that it claims are involved in supplying weapons to Taiwan in recent years. The companies named include Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing in St. Louis, Gibbs & Cox, Advanced Acoustic Concepts, VSE Corporation, Sierra Technical Services, Red Cat Holdings, Teal Drones, ReconCraft, High Point Aerotechnologies, Epirus, Dedrone Holdings, Area-I, Blue Force Technologies, Dive Technologies, Vantor, Intelligent Epitaxy Technology, Rhombus Power, and Lazarus Enterprises.

China announced that all movable and immovable assets of these companies located within the country will be frozen. Chinese individuals and organisations have also been barred from doing business or cooperating with these firms in any form.

Sanctions extended to senior executives

In addition to companies, China has also imposed restrictions on 10 senior executives in the defence sector. Among them is Palmer Luckey, founder of Anduril Industries, along with top executives from companies such as L3Harris and VSE Corporation, according to ANI. According to the Foreign Ministry, these executives will face restrictions on assets located in China and activities related to the country.

Taiwan is a ‘red line’, says China

A spokesperson for the Chinese Foreign Ministry said the Taiwan issue is at the very core of China’s national interests and is a red line in China-US relations. The spokesperson warned that anyone attempting to provoke China on the Taiwan question would face a firm response. In a statement, the ministry said, “Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China’s firm response. Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing. No country or force shall ever underestimate the resolve, will and ability of the Chinese government and people to safeguard national sovereignty and territorial integrity.”

China claims Taiwan as part of its territory — contending that the autonomously governed island must eventually be reunified with the mainland. The United States does not officially recognise Taiwan as a sovereign nation under the ‘One China’ policy, but maintains unofficial ties with the administration.

US arms supply to Taiwan

The reaction from China comes after the administration of US President Donald Trump approved a major arms package for Taiwan last week. According to the US State Department, the proposed sales are valued at more than USD 10 billion and include medium-range missiles, howitzers, and drones.

According to Focus Taiwan, the potential sale involves eight arms packages, including HIMARS rocket systems, anti-tank missiles, and drones, with a total estimated cost of USD 11.1 billion.

December 31, 2025 - Posted by Christina Macpherson | China, politics international