China Sanctions US Companies, Executives Over Arms Sale to Taiwan

Arms sales to Taiwan have ‘a deterrent effect on the Chinese People’s Liberation Army,’ an expert said.
China Sanctions US Companies, Executives Over Arms Sale to Taiwan
Taiwanese soldiers salute during National Day celebrations in front of the Presidential Building in Taipei, Taiwan, on Oct. 10, 2021. Chiang Ying-ying/AP Photo
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The Chinese regime sanctioned 13 U.S. defense companies and six executives on Dec. 5 in response to the U.S. government’s latest arms sale to Taiwan.

Beijing imposed the sanctions after the U.S. State Department’s decision on Nov. 29 to greenlight the plan to sell to Taiwan up to $385 million worth of spare parts for F-16 fighter jets and Active Electronically Scanned Array radar, as well as other equipment.

In announcing the sanctions, China’s Ministry of Foreign Affairs said the planned arms sale “interferes in China’s internal affairs, and undermines China’s sovereignty and territorial integrity.”

The companies targeted include drone makers such as BRINC Drones Inc. and Kratos Unmanned Aerial Systems Inc. Some others were Teledyne Brown Engineering Inc., Rapid Flight LLC, Red Six Solutions, Shield AI Inc., SYNEXXUS Inc., Firestorm Labs Inc., HavocAI, Neros Technologies, Cyberlux Corporation, Domo Tactical Communications, and Group W.

The regime also sanctioned six senior executives from Raytheon, BAE Systems, Alliant Techsystems Operations, Data Link Solutions, and BRINC Drones.

The sanctioned individuals are banned from entering China. All entities’ assets in China will be frozen, and all individuals and companies in China are banned from doing business with the sanctioned entities.

The sanctions are largely symbolic because the U.S. government already restricts defense exports to China.

The Epoch Times reached out to the targeted companies and individuals for comment but did not receive any response by publication time.

The Chinese Communist Party (CCP) has never ruled Taiwan, although it claims sovereignty over the self-governed island and hasn’t ruled out taking the island by force. In recent years, the CCP has stepped up its military preparations to invade the island nation and has conducted military drills encircling Taiwan.

Although the United States does not have formal diplomatic ties with Taiwan, it maintains ties with Taipei under the Taiwan Relations Act and the U.S. “Six Assurances” to Taiwan, which recognize Taiwan’s right to self-determination and allow Washington to sell military equipment to Taiwan for its self-defense.

In 2018, President Donald Trump signed the Asia Reassurance Initiative Act, committing to “regular transfers of defense articles to Taiwan” to help the island meet “the existing and likely future threats from the People’s Republic of China.”

The recent $385 million arms sale plan was the 18th arms sale under the Biden administration.

President Joe Biden has also approved arms donations using presidential drawdown authority.

On Nov. 30, Taiwan’s Presidential Office thanked the United States, calling the Taiwan–U.S. security partnership “a critical cornerstone for peace and stability in the Indo-Pacific region.”

Researchers at Taiwan’s Institute for National Defense and Security Research (INDSR), told The Epoch Times that Beijing’s largely “symbolic” sanctions will not stop U.S. arms sales to Taiwan.

Chung Chih-tung, assistant research fellow at INDSR’s Division of National Security Research, said the United States has continued to sell arms to Taiwan despite Beijing’s protests since 1979 because strengthening Taiwan’s self-defense capabilities via arms sales is “an integral part of the U.S. policy to deter China” from invading Taiwan.

Moreover, amid the increasingly tense U.S.–China relations, “Taiwan has an irreplaceable importance in the U.S. geostrategy of containing China,” he said.

The Arleigh Burke-class guided-missile destroyer USS Kidd and U.S. Coast Guard cutter Munro conduct Taiwan Strait transits on Aug. 27, 2021. (U.S. Navy/Handout via Reuters)
The Arleigh Burke-class guided-missile destroyer USS Kidd and U.S. Coast Guard cutter Munro conduct Taiwan Strait transits on Aug. 27, 2021. U.S. Navy/Handout via Reuters

Wang Shiow-wen, assistant research fellow at INDSR’s Division of Chinese Politics, Military and Warfighting Concepts, said increased U.S. weapons sales to Taiwan will likely continue because of Beijing’s expansion of its military capabilities.

“The military capabilities on the two sides of the [Taiwan] Strait is very imbalanced. The United States not only won’t stop arms sales to Taiwan, it will more likely sell more and better weapons to Taiwan, particularly when the United States is transitioning to a new administration,” she said.

“It has little to do with the trade war and more to do with the balance of military power in East Asia,” she said, adding that the United States cannot allow Beijing to compromise U.S. defense in the first island chain via Taiwan, or absorb the chip-making powerhouse and use it as leverage against the world.

China’s sanctions also followed Taiwanese President Lai Ching-te’s visit to Hawaii on Nov. 30.

It was Lai’s first stopover on U.S. soil as president, during a state visit to the Marshall Islands, Tuvalu, and Palau. Beijing later criticized the United States for allowing him to transit through Hawaii.

Luo Ya contributed to this report.
Alex Wu
Alex Wu
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Alex Wu is a U.S.-based writer for The Epoch Times focusing on Chinese society, Chinese culture, human rights, and international relations.