China Sanctions 20 US Defense Firms Over $10 Billion Taiwan Arms Deal

Instead of a handshake, it's a clenched fist. Beijing has retaliated against a massive US arms package for Taiwan, imposing sanctions on 20 American defense companies and their executives. The move, announced December 26, 2025, escalates geopolitical tensions over the self-governed island that China claims as its own.

The Details of the Sanctions

China’s foreign ministry stated that the sanctions will freeze all movable, immovable, and other assets of the listed companies within China. Additionally, all organizations and individuals in the country are prohibited from engaging in transactions or cooperation with them. The list includes major players like Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Boeing in St. Louis, among a total of 20 firms.

A Record-Breaking Arms Deal at the Core

The sanctions are a direct response to an arms package proposed by Washington last week. Valued at over US$10 billion, the deal would be the largest-ever American weapons sale to Taiwan if approved by the US Congress. The package reportedly includes medium-range missiles, howitzers, and drones.

According to Beijing’s foreign ministry, the sale “seriously violates the one-China principle, interferes in China’s internal affairs, and undermines China’s sovereignty and territorial integrity.” The US, in contrast, maintains it's legally bound by its own laws to provide Taiwan with weapons for self-defense and opposes any attempt to change the island's status by force.