A payload pod housing a synthetic aperture radar made by U.S. company IMSAR is mounted under an APEX aircraft in Taitung, Taiwan, October 13, 2025. REUTERS/Ann Wang
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Moneycontrol26-12-2025, 20:04

China Sanctions 20 US Firms Over Record $11.1B Taiwan Arms Deal

  • China sanctioned 20 US defense companies and 10 executives in response to the Trump administration's approval of an $11.1 billion arms sale to Taiwan.
  • Beijing stated the move was a direct response to large-scale US arms sales to "China’s Taiwan region," calling it a challenge to its core interests and a "red line."
  • China urged the US to respect the One China principle, stop arming Taiwan, and cease sending "wrong signals" to 'Taiwan independence' separatist forces.
  • The sanctions are largely symbolic, as most targeted US defense firms have minimal business presence in China.
  • The proposed $11.1 billion arms package, awaiting US Congress approval, is the largest to Taiwan and aims to reassure US "China hawks."

Why It Matters: China retaliates with sanctions over record US arms sale to Taiwan, escalating tensions.

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