China Imposes Sanctions on US Defense Companies Over Taiwan Arms Sales

Comprehensive Measures Against US Entities

China's Ministry of Foreign Affairs announced sanctions against 20 US defense companies and 10 individuals on December 26, 2025, in response to recent arms sales to Taiwan ¹

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Source 2

https://internasional.kontan.co.id/news/jual-senjata-ke-taiwan-china-beri-sanksi-perusahaan-pertahanan-as

. The measures include freezing assets of targeted entities in China and prohibiting domestic organizations and individuals from conducting business with them.

Key Targets of Sanctions

The sanctions specifically target major US defense contractors, including Boeing's St. Louis division, which is involved in significant defense projects. Among the individuals sanctioned are the founder of Anduril Industries and nine senior executives from affected companies ¹

. These individuals are prohibited from entering Chinese territory.

International Reactions

The US State Department has expressed strong objections to China's actions, viewing them as unwarranted interference. The sanctions have escalated tensions between the two nations, particularly in the context of their competing interests in the Asia-Pacific region ²

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Economic Implications

The sanctions could have significant implications for US companies operating in China, particularly those in the defense sector. The asset freeze and business transaction ban may affect not only defense-related activities but also broader business operations within China.