China imposed sanctions on seven U.S. defense-related companies on Friday, citing their involvement in recent military sales and assistance to Taiwan. The sanctions were announced in response to the United States’ increased support for Taiwan, including the approval of the National Defense Authorization Act for Fiscal Year 2025, which Beijing claims undermines its sovereignty and violates the one-China principle.
The sanctioned companies are Insitu Inc., Hudson Technologies Co., Saronic Technologies Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc., and Oceaneering International Inc. China also sanctioned unnamed senior executives from these firms. The sanctions, effective December 27, freeze the companies’ assets in China and prohibit Chinese entities and individuals from conducting business with them.
This action follows the U.S. authorization of $571 million in defense aid to Taiwan and a $295 million arms sale package. The defense bill also allocates $895 billion in military spending, with provisions aimed at supporting Taiwan and countering perceived threats from China. Beijing has condemned the measures, describing them as a violation of agreements between the two countries and interference in its domestic affairs.
Chinese Foreign Ministry spokesperson Mao Ning criticized the U.S. for arming Taiwan, warning that such actions could destabilize the region and backfire. Defense Ministry spokesperson Zhang Xiaogang accused the U.S. of exaggerating the “China threat” narrative to justify increased military spending, which he labeled as hegemonic behavior.
Meanwhile, Taiwan has reported increased Chinese military activity near its territory, including naval exercises simulating a blockade. Taiwan’s government has called these maneuvers destabilizing and disruptive to international trade. China has not commented on the exercises, but they reflect rising tensions in the region.
Although the sanctions are symbolic—U.S. defense companies do not sell military goods to China—they underscore the growing strain between the two nations. Taiwan remains a focal point in U.S.-China relations, with both sides taking firm positions that heighten the risk of further escalation.
