China sanctions 2 U.S. defence companies and says they support arms sales to Taiwan

Beijing sanctions US defense companies over Taiwan arms sales, freezing assets and barring entry into China.

China on Thursday announced rare sanctions against two U.S. defence companies over what it called their support for arms sales to Taiwan, the self-governing island democracy Beijing claims as its own territory to be recovered by force if necessary.

The announcement freezes the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held within China. It also bars the companies' management from entering the country.

Filings show General Dynamics operates a half-dozen Gulfstream and jet aviation services operations in China, which remains heavily reliant on foreign aerospace technology even as it attempts to build its own presence in the field.

The company also helps make the Abrams tank being purchased by Taiwan to replace outdated armour intended to deter or resist an invasion from China.

General Atomics produces the Predator and Reaper drones used by the U.S. military. Chinese authorities did not go into details on the company's alleged involvement with supplying arms to Taiwan.

Beijing has long threatened such sanctions, but has rarely issued them as its economy reels from the COVID-19 pandemic, high unemployment and a sharp decline in foreign investment.

“The continued U.S. arms sales to China's Taiwan region seriously violate the one-China principle and the provisions of the three China-U.S. joint communiques, interfere in China's internal affairs, and undermine China's sovereignty and territorial integrity,” China's Foreign Ministry said in a statement.