China Sanctions 7 Companies Over US Military Aid to Taiwan

Beijing: The Chinese government imposed sanctions on seven companies on Friday in response to recent US announcements of military sales and aid to Taiwan, the self-governing island that China claims as part of its territory. These sanctions are also linked to the recent approval of the US government's annual defense spending bill, which a Chinese Foreign Ministry statement said “includes multiple negative sections on China.”

China has long objected to American military assistance for Taiwan and typically imposes sanctions on related companies after a sale or aid package is announced. The sanctions tend to have a limited impact since American defense companies do not sell arms or military goods to China. The US is the primary supplier of weapons to Taiwan for its defense.

The seven companies sanctioned include Insitu Inc., Hudson Technologies Co., Saronic Technologies, Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc., and Oceaneering International Inc. The Foreign Ministry statement also mentioned that “relevant senior executives” of these companies are sanctioned, though it did not name any specific individuals.

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

US President Joe Biden last week authorised up to USD 571 million in Defence Department material and services and military education and training for Taiwan. Separately, the Defence Department announced that USD 295 million in military sales had been approved.

The US defence bill boosts military spending to USD 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 US has backed Ukraine. It also expands a ban on US military purchases of Chinese products ranging from drone technology to garlic for military commissaries.

Zhang Xiaogang, a Chinese Defence Ministry spokesperson, said earlier this week that the US is hyping up the “so-called” threat from China to justify increased military spending.

“US military spending has topped the world and keeps increasing every year,” he said at a press conference. "This fully exposes the belligerent nature of the US and its obsession with hegemony and expansion.” The Foreign Ministry statement said the US moves violate agreements between the two countries on Taiwan, interfere in China's domestic affairs and undermine the nation's sovereignty and territorial integrity.

Taiwan's government said earlier this month that China had sent dozens of ships into nearby seas to practice a blockade of the island, a move that Taiwan said undermined peace and stability and disrupted international shipping and trade. China has not confirmed or commented on the reported military activity.

(with agency inputs)