China Slams 7 US Military Companies with Sanctions Over Taiwan Support

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Tejaswini Deshmukh
Tejaswini Deshmukh
Intrigued by the intersection of finance and technology, I delve into the latest RegTech advancements. With a keen eye for unraveling the complexities of compliance, I dissect current financial news and frauds.

In a significant move, China has announced sanctions against seven United States military companies and their senior executives. This decision follows a recent announcement by the United States about a new military assistance package and arms sales to Taiwan, which China views as a serious threat to its sovereignty.

The sanctions are a direct response to the United States’ ongoing military support for Taiwan, a self-governing island that China considers a part of its territory. The Chinese government sees the US’s actions as an attempt to support Taiwan’s independence, a move that Beijing firmly opposes.

What the Sanctions Include

The Chinese Foreign Ministry’s statement, issued on Friday, explained that the sanctions would target both the companies and their executives. The list includes companies like Insitu, Inc., Raytheon Canada, and Hudson Technologies Co., among others. These companies are accused of being involved in providing military aid to Taiwan.

Under the sanctions, the companies’ assets in China—both movable and immovable—will be frozen. This means that their property and resources in China cannot be used or sold. In addition, all organizations and individuals within China will be banned from conducting business or any form of cooperation with these companies. This move is meant to isolate the sanctioned companies and pressure them to stop their involvement in Taiwan’s military matters.

China Issues Stark Warning by Escalating Military Movements Around Taiwan

The sanctions went into effect on December 27, 2024, signaling China’s strong disapproval of the United States’ actions.

Why China Is Acting Now

The recent decision by the United States to provide additional military support to Taiwan is part of a broader strategy outlined in the National Defense Authorization Act for Fiscal Year 2025. This law includes several provisions that target China, including increased military aid to Taiwan. China sees these provisions as a violation of the one-China principle, which states that Taiwan is an inseparable part of China.

The Chinese government believes that the US’s actions are a direct interference in its internal affairs. The US’s support for Taiwan, they argue, threatens China’s sovereignty and could destabilize the region. China’s Foreign Ministry spokesperson, Mao Ning, emphasized that arming Taiwan only leads to negative consequences and that the US is using Taiwan as an excuse to justify its own military spending and dominance in global affairs.

In the statement, China called out the US for acting with a Cold War mindset. According to China, the US is distorting facts to create fear about China’s rise and using Taiwan as a tool to maintain its global influence.

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China’s Strong Warning to the US

China made it clear that it expects the US to stop its support for Taiwan immediately. In particular, China urged the US to adhere to the terms of the three joint communiqués signed between China and the US, which include respecting China’s sovereignty over Taiwan. The most important of these is the August 17 Communique, which emphasizes that the US should not support Taiwan’s independence in any way.

Mao Ning stated that the US must adopt a more balanced and rational approach to its relationship with China. She warned that actions that harm China’s interests will only escalate tensions between the two countries. China also said it would take further necessary steps to protect its sovereignty, security, and development interests, highlighting that the US’s continued military support for Taiwan will not be tolerated.

China has taken a decisive step in response to the United States’s increasing military assistance to Taiwan. The sanctions against the seven United States companies are part of China’s broader strategy to protect its interests and send a clear message to the United States about its stance on Taiwan.

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