China sanctions US firms over arms sales to Taiwan
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China said on May 20 that it would sanction three US defence companies over their sales of arms to Taiwan.
PHOTO: REUTERS
BEIJING - China said on May 20 that it would sanction three US defence companies over their sales of arms to Taiwan, as the self-ruled island inaugurated a new president.
US firms General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space and Security will be added to Beijing’s list of “unreliable entities”, said the country’s Commerce Ministry.
“They will be barred from engaging in China-related import or export activities, and are forbidden to make new investments in China,” the state-run Xinhua news agency said.
“Senior executives of the companies are prohibited from entering China, while their work permits will be revoked.”
The announcement came as Mr Lai Ching-te was sworn in on May 20 as president of the democratic island in the face of growing Chinese military pressure.
China claims Taiwan as part of its territory and has branded the 64-year-old Mr Lai a “dangerous separatist” who will bring “war and decline” to the island.
Washington switched diplomatic recognition from Taipei to Beijing in 1979, but has remained Taiwan’s most important partner and biggest arms supplier.
The US approved a huge military aid package for Taipei in April, including US$1.9 billion (S$2.6 billion) for replenishing its military equipment and training.
Another US$2 billion will be used for “foreign military financing” for countries in the region.
Beijing seethed over the package, warning it would increase the “risk of conflict” along the strait.
