In reaction to a recent arms transaction to Taiwan valued at about $385 million, China has sanctioned six executives and 13 U.S. military companies. China has consistently opposed U.S. arms supplies to Taiwan, which it considers a breach of its sovereignty and territorial integrity. This action was announced on December 5, 2024.
Prominent defense contractors like Teledyne Brown Engineering, BRINC Drones, and Shield AI are among the sanctioned businesses. The production of drones and associated technologies is the main activity of these companies.
Raytheon Technologies executives Gerard Huebe and Barbara Borgonovi are among those impacted; they are prohibited from entering China, including Hong Kong and Macao.
The penalties forbid doing business with Chinese organizations and freeze the assets of listed firms in China. This action is mostly symbolic because current U.S. regulations already place severe limitations on U.S. defense firms’ ability to operate in China.
Taiwan, which China views as a renegade province, is the target of the recent arms sale, which includes support and spare parts for F-16 fighter jets and radar equipment. Despite China’s objections to such deliveries, the United States continues to fulfill its obligation to provide Taiwan with defensive weapons under the Taiwan Relations Act of 1979.
Chinese officials have called on Washington to stop supporting what they refer to as “Taiwan independence” activities and have chastised the United States for threatening peace in the Taiwan Strait. Beijing has a history of retaliating against U.S. defense engagements with Taiwan, as evidenced by the most recent round of penalties, which come after a similar imposition in September 2024 following another arms transfer to the island.
