US-Taiwan Arms Deal Fallout: China Sanctions Boeing, Northrop Grumman, 18 Other Defense Firms

(MENAFN- Live Mint) In the fallout of the latest US-Taiwan arms deal, China acted heavily against 20 US defense-related companies and 10 senior executives. It decided to pursue countermeasures in accordance with the Anti-Foreign Sanctions Law in response to US announcement of large-scale arms sales to China's Taiwan region.

China imposes sanctions on 20 US companies

The Chinese Foreign Ministry on Friday announced that action will be taken against those who have engaged in arming Taiwan in recent years. Warning of strict action against any attack to the country's sovereignty, Chinese Foreign Ministry in a statement on Friday said,“Anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China's firm response. Any company or individual who engages in arms sales to Taiwan will pay the price for the wrongdoing," Global Times reported.

It added, "No country or force shall ever underestimate the resolve, will and ability of the Chinese government and people to safeguard national sovereignty and territorial integrity.”

• China imposed sanctions against the following 20 US companies:

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

These sanctions come almost a week after US announced large-scale arms-sale package, valued at $11.1 billion. The sanctions entail freezing all movable and immovable properties as well as other types of assets belonging to the listed companies within China.

Furthermore, organizations and individuals within China are barred from engaging in transactions, cooperation, or other activities with these entities.

• China's countermeasures apply to the following 10 senior executives:

Palmer Luckey, founder of Anduril Industries; John Cantillon, vice president of L3Harris Technologies, Inc. and vice president and principal accounting officer of L3Harris Maritime Services; Michael J. Carnovale, president and chief executive officer of Advanced Acoustic Concepts; John A. Cuomo, president and chief executive officer of VSE Corporation; Mitch McDonald, president of Teal Drones, Inc.; Anshuman Roy, founder and chief executive officer of Rhombus Power Inc.; Dan Smoot, president and chief executive officer of Vantor; Aaditya Devarakonda, chief executive officer of Dedrone Holdings Inc.; Ann Wood, president of High Point Aerotechnologies; and Jay Hoflich, co-founder and chief executive officer of ReconCraft.

These countermeasures came into force on Friday, the announcement said.

All you need to know about US arms-sale package for Taiwan

On December 18, the Trump administration announced the largest ever US weapons package for the island and the second under US President Donald Trump's current administration, Reuters reported.

As per Taiwan regional“defense authority,” the proposed arms sales package cover eight items, including HIMARS rocket systems, howitzers, Javelin anti-tank missiles, Altius loitering munition drones and parts for other equipment.

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