China Sanctions US Defence Firms Including Boeing Over $10bn Taiwan Arms Sale
December 26, 2025
China’s foreign ministry has imposed sanctions on 10 US defence firms and 20 individuals including Boeing after President Donald Trump approved a $10 billion arms sale to Taiwan. The sanctions freeze any assets these companies and individuals hold in China and ban local organizations and people from doing business with them.
The US package includes medium-range missiles and drones, marking the largest weapons sale in US-Taiwan history. China views Taiwan as part of its territory, a claim Taiwan rejects. This issue remains a major tension point between China and the US, which also clash over trade.
The sanctions also ban listed individuals, including the founder of Anduril Industries and nine senior executives, from entering China. Boeing’s production hub in St Louis, Missouri, is among the targeted facilities. Other sanctioned companies are Northrop Grumman Systems Corporation and L3Harris Maritime Services.
A spokesperson for China’s foreign ministry said, “The Taiwan issue is the core of China’s core interests and the first red line that cannot be crossed in China-US relations. Any provocative actions that cross the line on the Taiwan issue will be met with a strong response from China.” They urged the US to stop what they called “dangerous” actions of arming Taiwan.
US law requires providing Taiwan with means to defend itself, but these arms sales continue to fuel tensions with China.
The $10 billion deal includes 420 Army Tactical Missile Systems (ATACMS), similar to weapons sent to Ukraine under President Biden for defense against Russia.
The US State Department said the sale supports US national and economic interests by helping Taiwan modernize its armed forces and maintain credible defense, boosting security, political stability, military balance, and economic progress in the region.
Reuters contributed reporting.
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China
Us Defence Companies
Taiwan Arms Sale
Sanctions
Boeing
Trump administration
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