China punishes US for arms to Taiwan, sanctions Boeing subsidiary
China has imposed sanctions on 20 US arms companies and ten individuals in response to an announced $11.1 billion arms sale to Taiwan.
The sanctions affect Boeing Defence (St. Louis), Northrop Grumman Systems and L3Harris Maritime Services, among other companies. Their assets in China are frozen and they are banned from doing business with domestic entities.
Individuals, including the founder of Anduril Industries and senior executives of the companies concerned, have been banned from entering the country. Beijing considers arms sales an infringement of sovereignty and has warned against crossing a "red line" in relations with the US.
Washington rejects the sanctions and stresses that defence support to Taiwan has a legal framework and a stabilising effect in the region. At the same time, the US side called on China to stop pressure against Taiwan and open dialogue.
Despite the limited practical impact on the defence sector, the sanctions may affect Boeing's negotiations for the sale of up to 500 civil aircraft to Chinese airlines.
(reuters, pir)