China Sanctions 9 US Firms Over Arms Sales to Taiwan

Navy personnel on a Taiwanese Navy warship in Keelung, Taiwan, on Aug. 7, 2022. Annabelle Chih/Getty Images

China’s communist regime has imposed sanctions on nine U.S. defense companies over recent arms sales to Taiwan, including freezing their properties in China.

The ruling Chinese Communist Party (CCP) described the sanctions, which went into effect on Sept. 18, as “countermeasures,” which include freezing the targeted firms’ properties in China and prohibiting Chinese organizations and individuals from conducting transactions with these companies.

According to the Chinese foreign ministry, the nine U.S. military-linked companies include Sierra Nevada Corporation, Stick Rudder Enterprises LLC, Cubic Corporation, S3 Aerospace, TCOM Ltd. Partnership, TextOre, Planate Management Group, ACT1 Federal, and Exovera.

In recent years, the CCP has stepped up its military preparations to invade Taiwan, the self-ruled island whose official name is the Republic of China (ROC). The ROC’s nationalist government retreated to Taiwan in 1949 after being defeated by the communists in China’s civil war. Under Mao Zedong, the People’s Republic of China (PRC) was founded on the mainland. Although the PRC has never ruled Taiwan, the CCP claims sovereignty over the island nation.

In response to the CCP’s increased aggression and threat in the Taiwan Strait, the United States has strengthened its military cooperation with Taiwan. Although Washington does not have diplomatic ties with Taipei, it has provided Taiwan with weapons to defend itself in the event of an attack.

The U.S. State Department approved a proposed $228 million military sale to Taiwan on Sept. 16, providing parts and maintenance services. This marks the 16th arms sale under the Biden administration since 2021.

Taiwanese Air Force pilots run past an armed U.S.-made F-16V fighter jet at an air force base in Chiayi, a city in southern Taiwan, on Jan. 5, 2022. Sam Yeh/AFP via Getty Images

At a press briefing in Beijing on Sept. 18, Chinese foreign ministry spokesman Lin Jian urged the United States to “immediately stop the dangerous trend of arming Taiwan,” adding that Beijing “will take strong and resolute measures to firmly defend [China’s] national sovereignty, security and territorial integrity.”

Analysts say Beijing’s latest move to pressure the United States to curb arms sales to Taiwan has no real effect and could backfire.

“The CCP imposes sanctions on the U.S. defense companies as long as there’s a U.S. arms sale to Taiwan—it has become a new normal. The U.S. military industry has already expected and prepared for it, so it has little impact. These American defense firms have almost zero business in China because of the tension between the United States and China,” Chung Chih-tung, an assistant research fellow at Taiwan’s Institute for National Defense and Security Research, told The Epoch Times.

Su Tzu-yun, a researcher and director of the Division of Defense Strategy and Resources at Taiwan’s Institute for National Defense and Security Research, told The Epoch Times on Sept. 19 that the sanctions are for domestic propaganda and to satisfy the pro-communist Chinese.

However, Su said that in the future, the CCP could implement sanctions against individuals associated with these companies, “including the CEOs, and chairman of the board to deny their entry to China, and others, which would put psychological pressure on them.”

Su said if Beijing takes further action, it could trigger a stronger response from Washington, such as issuing countermeasures.

Regarding the possibility of war, Chung said there’s little chance of a large-scale military conflict in the Taiwan Strait in the short term “because Taiwan is very restrained to avoid this situation from happening, and China doesn’t have the ability to invade Taiwan.”

U.S. President Joe Biden publicly stated last year that China lacks the capacity to invade Taiwan due to the youth unemployment and economic challenges the regime is facing. According to official data, China continues to face an economic slowdown in the third quarter of this year.

Su said that whether such a war would occur depends not only on China but also on Taiwan’s defense capabilities.

Taiwan has since 2022 started a “realignment” of its military force structure to improve its defense capabilities, according to a recent report by the Congressional Research Service.

Luo Ya and Reuters contributed to this report.