China sanctions 7 companies over U.S. military assistance to Taiwan

Chinese government sanctions U.S. defense companies over Taiwan military sales, escalating tensions between the two superpowers.

The Chinese government placed sanctions on seven companies on Friday in response to recent U.S. announcements of military sales and aid to Taiwan, the self-governing island that China claims as part of its territory.

The sanctions also come in response to the recent approval of the U.S. government's annual defence spending bill, which a Chinese Foreign Ministry statement said “includes multiple negative sections on China.”

China objects to American military assistance for Taiwan and often imposes sanctions on related companies after a sale or aid package is announced. The sanctions generally have a limited impact, because American defense companies don't sell arms or other military goods to China. The U.S. is the main supplier of weapons to Taiwan for its defense.

The seven companies being sanctioned are Insitu Inc., Hudson Technologies Co., Saronic Technologies, Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc. and Oceaneering International Inc., the Foreign Ministry statement said. It said that “relevant senior executives” of the companies are also sanctioned, without naming any.

Any assets they have in China will be frozen, and organizations and individuals in China are prohibited from engaging in any activity with them, it said.

U.S. President Joe Biden last week authorized up to $571 million in Defense Department material and services and military education and training for Taiwan. Separately, the Defense Department announced that $295 million in military sales had been approved.

The U.S. defence bill boosts military spending to $895 billion and directs resources toward a more confrontational approach to China. It establishes a fund that could be used to send military resources to Taiwan in much the same way that the U.S. has backed Ukraine. It also expands a ban on U.S. military purchases of Chinese products ranging from drone technology to garlic for military commissaries.