China Is Sanctioning American Defense Firms and Execs

China announced sanctions against 20 US defense companies and 10 senior executives on Friday, citing US arms sales to Taiwan as its motive.

In a statement, China’s foreign ministry said its assets within China, including movable and immovable properties, would be frozen and that domestic organizations and individuals would be prohibited from doing business with them.

Individuals named on the list would also be denied visas and entry to the country, the ministry added.

The sanctions list includes Northrop Grumman Systems Corporation, Boeing’s St. Louis branch, Epirus, and Anduril Industries founder Palmer Luckey.

In a statement, a spokesperson for the foreign ministry said: “We stress once again that the Taiwan question is at the very core of China’s core interests and the first red line that must not be crossed in China.”

“Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing,” they added.

When reached for comment, Anduril pointed Business Insider to an X post from Luckey in which the CEO joked that he was honored.

“I want to thank my family, my team, and my Lord Jesus Christ for this award,” Luckey wrote on X. “Anduril has been sanctioned for a while now, as have many of my peers, but it means so much to finally have my non-existent Chinese assets seized and repurposed.”

China’s sanctions follow the US announcement of a $11 billion military package for Taiwan last week.

The deal, which includes self-propelled Howitzers and HIMARS rocket launchers, still needs to be approved by Congress — but it drew a swift response from Beijing.

Lin Jian, a spokesperson for the foreign ministry, said in a statement at the time that China “strongly deplores and firmly opposes” the sales.

China regards Taiwan as a breakaway province that will one day come under Beijing’s control, and Chinese President Xi Jinping has refused to rule out an invasion of the island. Taiwan’s ruling Democratic Progressive Party views Taiwan as separate from China.

Under the Taiwan Relations Act, the US is obligated to assist Taiwan in defending itself.

Beijing has ramped up pressure around the island in recent years, holding frequent military exercises in the surrounding skies and waters.

A 2024 report by the Washington, D.C.-based think tank the Center for Strategic and International Studies suggested that China may be able to exert power over Taiwan without launching an invasion.

The report said China could impose a quarantine of the island using its coast guard.

“The purpose of a quarantine is not to completely seal Taiwan off from the world but to assert China’s control over Taiwan by setting the terms for traffic in and out of the island,” it argued.

“A key goal is to compel countries and companies to comply with China’s terms.”