The Chinese Communist government on Friday imposed sanctions against 20 American defense-related companies — including Northrop Grumman Systems Corporation and Boeing — and ten of their executives over arms sales to Taiwan.
China was infuriated by U.S. approval of an $11 billion arms sale to Taiwan last Wednesday, one of the largest American weapons deals ever approved for the island. The deal still needs approval from the U.S. Congress before it can be completed.
The arms package includes self-propelled howitzers, Javelin and TOW missiles, Altius drones, and units of the M142 High Mobility Artillery Rocket System (HIMARS), a highly effective mobile long-range multiple rocket launcher.
Military analysts consider the HIMARS to be one of the best rocket artillery systems in the world. The system has performed so well in Ukraine that the Ukrainians are working on developing their own domestically produced version of it.
The Altius drones would also be a formidable addition to Taiwan’s arsenal, as the package includes both sophisticated networked reconnaissance drones and precision strike weapons. The Altius-700M strike drone is a small but deadly drone that can deliver a 33-pound anti-armor warhead at ranges of up to 100 miles. Taiwan received congressional approval to purchase the Altius-600 series of long-range recon drones in 2024.
“This is the second arms sale to Taiwan announced during the Trump administration’s second term, once again demonstrating the U.S.’s firm commitment to Taiwan’s security,” the Taiwanese Foreign Ministry said when the deal was announced. The first sale was a much smaller, but logistically significant, $330 million sale of parts for military equipment in November.
The Chinese Foreign Ministry was furious over the sale, warning that the U.S. risked crossing the “red line” of interfering in China’s handling of Taiwan affairs.
“No one shall underestimate the firm will and strong capability of the Chinese government and the Chinese people in safeguarding national sovereignty and territorial integrity,” the Chinese Foreign Ministry railed last week.
The foreign ministry announced the sanctions against American companies and executives on Friday, stating that the companies would no longer be allowed to conduct business in China, their assets would be seized, and their executives would be banned from visiting the country.
“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-U.S. relations. Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing,” the Chinese Foreign Ministry said.
One of the sanctioned executives is Palmer Luckey, the founder of Anduril Industries, which was also targeted for sanctions by China. Anduril produces Altius drones, and opened a branch office in Taiwan in August to strengthen its commitment to Taiwanese security.
“We produced Altius at risk because Taiwan needs defense capabilities now, not years from now. Anduril is committed to supporting Taiwan and our allies across the Indo-Pacific with the technology they need to deter aggression and preserve stability,” Luckey said when announcing his company’s Taiwan branch office.
China has imposed eight previous rounds of sanctions against American companies for selling equipment to Taiwan beginning in 2023. Some big names sanctioned in the earlier rounds included Lockheed Martin and Raytheon. China also placed export restrictions on “dual-use” technologies to most of these companies in January 2024. The sanctions are largely symbolic, as the targeted American companies do not have extensive assets in China.
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