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China targets major US defense firms over arms sales to Taiwan

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China targets major US defense firms over arms sales to Taiwan
Policy
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China has announced the addition of several US companies to its export control list, citing the need to "safeguard national security interests." The move includes placing major US defense companies such as Boeing Defense, General Dynamics, and Lockheed Martin on its "Unreliable Entity List." This decision is in response to US arms sales to Taiwan, a territory China claims as its own.

According to The Independent, Beijing has sanctioned 28 US companies, increasing the total number on its list to 45. Of these recent additions, 10 are now on the Unreliable Entity List. A spokesperson from China's commerce ministry commented that the military technology cooperation between the US and Taiwan "seriously undermines China’s national sovereignty and territorial integrity."

The sanctions mean these companies are prohibited from making investments in China or sending top executives there. The affected firms include Boeing Defense, Space and Security; Lockheed Martin and subsidiaries; Raytheon Missile and Defense; Anduril Industries; and General Dynamics and subsidiaries. They will be banned from importing dual-use products—items with both civilian and military applications.

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This development comes shortly before Donald Trump begins his second term as President of the United States. Despite China's previous sanctions having minimal impact, this latest action suggests an escalation in targeting US economic interests. Raymond Kuo of the RAND Corporation told VOA that these sanctions are unlikely to significantly affect the targeted companies since they generally do not conduct business with China.

In recent years, the US has bolstered Taiwan's defenses amid rising Chinese aggression. In October, another round of arms sales to Taiwan was approved by the US government, valued at $2 billion. These sales included National Advanced Surface-to-Air Missile Systems (Nasams) worth approximately $1.15 billion and radar systems valued at $830 million.

Following this deal was another sale worth $385 million for F-16 spare parts and radar systems. President Biden's administration has sanctioned 18 arms sales for Taiwan to ensure it maintains self-defense capabilities against China's threats.

Additionally, Biden recently approved a support package worth $571 million for Taiwan. This includes materiel, training, and other services as part of an ongoing effort to enhance Taiwan's military capabilities.

The geopolitical tension continues as China's Liaoning aircraft carrier group recently sailed through the Taiwan Strait after exercises aimed at blocking Taiwan internationally.

While the US supports Taiwan under the Taiwan Relations Act by providing military aid, it is not obliged to offer direct military intervention like it does with Japan or South Korea. Meanwhile, China has increased its military presence near Taiwan over the past year.

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