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

World
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Moneycontrol•26-12-2025, 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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