China sanctions 9 US firms over military sales to Taiwan

Updated Sept. 18, 2024, at 8:45 a.m. ET.

China imposed sanctions on Wednesday on nine U.S. military-linked firms for their sale of equipment to Taiwan and it denounced what it called the “dangerous trend” of U.S. military support for the democratic island.

On Monday, the U.S. Defense Security Cooperation Agency announced the sale of aircraft spare parts and related logistics and support worth about US$228 million to Taiwan, adding that the spare parts would boost the island’s “ability to meet current and future threats.” 

The sale included both classified and unclassified components for the aircraft, as well as related engineering, technical and logistics support services.

Washington’s arms sales to Taipei “seriously interfered in China’s internal affairs, and seriously damaged China’s sovereignty and territorial integrity,” said China’s Ministry of Foreign Affairs on Wednesday. 

China regards Taiwan as a renegade province that should be reunited with the mainland, by force if necessary. The democratic island has been self-governing since it effectively separated from mainland China in 1949 after the Chinese civil war.

Despite their lack of formal diplomatic ties, the U.S. has long been a key supplier of arms to Taiwan. Washington is bound by U.S. legislation, the 1979 Taiwan Relations Act, to provide Taiwan with arms for its defense.

A spokesperson for China’s foreign ministry on Wednesday, however, urged the U.S. to immediately stop the “dangerous trend” of arming Taiwan. 

“Stop conniving and supporting Taiwan independence, and stop undermining peace and stability in the Taiwan Strait,” said Lin Jian at a regular press briefing. 

While the U.S. maintains strong informal ties with Taiwan, it has not declared support for the island's independence.

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China's steps taken against the firms, including Sierra Nevada Corporation and Stick Rudder Enterprises LLC, come into effect on Wednesday and will freeze their property within China, the foreign ministry said in a statement.

It described the sanctions as countermeasures and said they also applied to Cubic Corporation, S3 Aerospace, TCOM Ltd Partnership, TextOre, Planate Management Group, ACT1 Federal and Exovera.

Organizations and individuals within China are prohibited from engaging in transactions with the firms, the ministry added.

China previously sanctioned and banned firms, including units of Lockheed Martin, for selling arms to Taiwan.

The latest sales were the 16th military sale to Taiwan authorized by the administration of President Joe Biden.

Taiwan’s Foreign Ministry expressed its appreciation for the U.S. support for Taiwan’s security while its Ministry of National Defense highlighted the strategic importance of the sale, noting that China’s gray zone tactics – a tactic using the threat of force to create fear and intimidation – had affected Taiwan’s training and operational readiness. 

The aviation-related equipment would enhance the combat readiness and security of Taiwan’s air force, the ministry said.

Updated to add background about U.S. ties to Taiwan.

Edited by Mike Firn.