By Leslie D. Soule

Last week, the U.S. announced a $11 billion dollar arms package to Taiwan. In response, China has sanctioned 20 U.S. defense companies, as tensions rise in the Taiwan Strait.

This latest Taiwan weapons package is the largest-ever for the U.S., and is triggering to China, a country that has vowed to claim Taiwan under its one-China policy. Meanwhile, the U.S. has traditionally held a policy of strategic ambiguity – which means that China will not know if the U.S. intends to come to the aid of Taiwan in the event of an attack. This news comes as the Pentagon has released a report stating that China may be developing plans to take Taiwan by “brute force”. The $11 billion dollar aid package to Taiwan includes medium-range missiles, howitzers and drones. The U.S. State Department states that this latest arms sale is to serve “U.S. national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and to maintain a credible defensive capability.”

China’s Foreign Ministry refutes this assertion, stating that this move violates diplomatic agreements between China and the U.S., gravely harms China’s sovereignty, security, and territorial integrity, and that it undermines regional stability. Foreign Ministry spokesperson Guo Jiakun has stated that, “This cannot save the doomed fate of ‘Taiwan independence’ but will only accelerate the push of the Taiwan Strait toward a dangerous situation of military confrontation and war. The U.S. support for ‘Taiwan Independence’ through arms will only end up backfiring. Using Taiwan to contain China will not succeed.”

The sanctions against U.S. defense companies, include freezing company assets in China and banning individuals and organizations from dealing with them. 

The 20 sanctioned U.S. companies are as follows:

  • Northrop Grumman Systems Corporation
  • L3Harris Maritime Services
  • Boeing (defense unit in St. Louis)
  • Gibbs & Cox
  • Advanced Acoustic Concepts
  • VSE Corporation
  • Sierra Technical Services
  • Red Cat Holdings
  • Teal Drones
  • ReconCraft
  • High Point Aerotechnologies
  • Epirus
  • Dedrone Holdings
  • Area-I
  • Blue Force Technologies
  • Dive Technologies
  • Vantor
  • Intelligent Epitaxy Technology
  • Rhombus Power
  • Lazarus Enterprises

In addition to these companies, 10 U.S. executives have been sanctioned by China as well. What this means is that these executives have had assets frozen in China and are barred from entry (including Hong Kong and Macau) and are banned from Chinese transactions.

  • Palmer Luckey — Founder of Anduril Industries
  • John Cantillon — Vice President, L3Harris Technologies
  • Michael J. Carnovale — President & CEO, Advanced Acoustic Concepts
  • John A. Cuomo — President & CEO, VSE Corporation
  • Mitch McDonald — President, Teal Drones
  • Anshuman Roy — Founder & CEO, Rhombus Power
  • Dan Smoot — President & CEO, Vantor
  • Aaditya Devarakonda — CEO, Dedrone Holdings
  • Ann Wood — President, High Point Aerotechnologies
  • Jay Hoflich — Co-founder & CEO, ReconCraft

U.S. officials have deemed the sanctions as largely symbolic, and have shown no indication of pulling funds from Taiwan arms sales.

Original article
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