The Chinese Communist government imposed sweeping sanctions Friday on 20 American defense-related companies and ten senior executives in retaliation for a major U.S. arms sale to Taiwan approved under President Trump. The move underscores escalating tensions between Washington and Beijing as the United States deepens its military support for the self-governing island.
China’s Foreign Ministry announced that companies including Northrop Grumman Systems Corporation and Boeing would be barred from conducting business in China. Their China-based assets will be seized, and sanctioned executives will be banned from entering the country. The sanctions were imposed after the United States approved an $11 billion arms package for Taiwan last Wednesday, one of the largest weapons deals ever authorized for the island.
The arms package includes self-propelled howitzers, Javelin and TOW anti-tank missiles, Altius drones, and multiple units of the M142 High Mobility Artillery Rocket System, known as HIMARS. Military analysts widely regard HIMARS as one of the most effective mobile long-range rocket artillery systems in the world, a reputation reinforced by its battlefield performance in Ukraine.
The Altius drones included in the package significantly enhance Taiwan’s surveillance and strike capabilities. The Altius-700M strike drone can carry a 33-pound anti-armor warhead and hit targets at distances of up to 100 miles. Taiwan previously received congressional approval in 2024 to acquire the Altius-600 series reconnaissance drones.
Taiwan’s Foreign Ministry welcomed the deal, noting it is the second arms sale announced during President Trump’s second term. Officials said the agreement demonstrates Washington’s continued commitment to Taiwan’s security. The first sale, approved in November, involved $330 million in spare parts and logistical support for existing military equipment.
Beijing reacted angrily, warning the United States it was approaching what it calls a “red line.” The Chinese Foreign Ministry accused Washington of interfering in China’s internal affairs and vowed consequences for companies involved in arming Taiwan. Officials said the Taiwan issue sits at the core of China’s national interests and warned that violators would “pay the price.”
Among the sanctioned executives is Palmer Luckey, founder of Anduril Industries, which produces the Altius drone systems. Anduril opened an office in Taiwan in August to expand cooperation with Taipei. Luckey said at the time that Taiwan needs defensive capabilities immediately, not years in the future, and reaffirmed the company’s commitment to supporting allies across the Indo-Pacific.
China has imposed eight previous rounds of sanctions on U.S. defense firms involved in Taiwan sales since 2023. Earlier targets included Lockheed Martin and Raytheon, along with export restrictions on dual-use technologies. Analysts note that the penalties are largely symbolic, as most affected companies have limited exposure to the Chinese market.
Still, the latest sanctions highlight the growing strategic divide as President Trump’s administration continues to strengthen military ties with Taiwan amid rising Chinese pressure in the region.
