China Sanctions US Defence Firms Over Taiwan Arms Sales

Coinciding with Taiwan’s presidential inauguration, China’s ministry of commerce on Monday announced sanctions against Boeing and two other defence companies for arms sales to Taiwan.

China Sanctions US Defence Firms Over Taiwan Arms Sales

Coinciding with Taiwan’s presidential inauguration, China’s ministry of commerce on Monday announced sanctions against Boeing and two other defence companies for arms sales to Taiwan. The move is the latest in a series of sanctions Beijing has announced in recent years against defence companies for weapons sales to Taiwan, a self-ruled island that China considers as part of its own territory.

China’s ministry of commerce placed Boeing’s Defence, Space & Security unit, General Atomics Aeronautical Systems, and General Dynamics Land Systems, on what is called an “unreliable entities’ list, forbidding their further investment in China, in addition to travel bans on senior management for the companies.

Lai Ching-te, who is the new president of Taiwan, has promised to enhance Taiwan’s security by importing advanced fighters and other technology, as well as by strengthening the domestic defence industry. In April, China froze the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems that were held within China.

Corporate filings reveal that General Dynamics runs six Gulfstream and jet aviation service operations in China. China still heavily depends on foreign aerospace technology while striving to establish its own presence in the industry. The company also assists in manufacturing the Abrams tank. Taiwan is buying the tank to replace old armor designed to prevent or withstand an attack from China.

General Atomics produces the Predator and Reaper drones that are utilized by the US military. However, it is not clear whether the company sells any weapons to Taiwan, according to several media reports. In 2022, China imposed sanctions on Ted Colbert, who serves as the president and CEO of Boeing Defence, Space and Security. This action came after the company secured a USD 355 million contract to deliver Harpoon missiles to Taiwan. Taiwan has faced increasing military harassment from China’s People Liberation Army. The PLA regularly flies fighter jets and sails warships near the island.