China has stepped up its counter-attack against the United States by intensifying its sanctions on American defense companies. In less than a week, Beijing today announced a second round of sanctions on ten US companies. Reason: Sale of arms to Taiwan.
With this, China has, in total, fined or penalized 45 US entities – 17 firms and 28 institutions – to varying degrees. While 17 firms have been sanctioned, 28 others have been penalized by adding them to the export ban list.
Those approved today include some of the largest defense manufacturers globally – subsidiaries of Lockheed Martin, Raytheon and General Dynamics.
In a statement issued by China’s Ministry of Commerce, all ten US companies have been added to Beijing’s “list of unreliable entities” for “participating in arms sales to Taiwan.” It further said that these companies “will be banned from all import and export activities” in the country from now on. Nor will they be allowed to invest in China.
The Chinese government said that their senior management had also been banned from entering the country. The latest action against US corporations comes just six days after similar sanctions were imposed on seven other companies. These included Boeing Defense’s subsidiary called Insitu.
Taiwan, officially known as the Republic of China, is a flashpoint between Beijing and Washington. Beijing claims the entire island-nation as part of China. Taiwan considers itself an independent nation. While China is a communist country, Taiwan is a democracy.
China has not ruled out using force to take over the country. Even in his address to the nation on New Year’s Eve, Chinese President Xi Jinping issued a threat to Taiwan and warned against anyone trying to seize it.
China has also held three rounds of major military exercises since President Lai Ching-te came to power following Taiwan’s democratic elections in May.
Also read: XI Jinping’s threat and a brief history of China and Taiwan
For Washington, Taiwan is a strategic ally in Asia and the United States is also Taiwan’s largest arms supplier. Protecting democracy over communism has also been a principled decision of the United States – the Cold War with Russia was based entirely on this principled stance.
Showing his commitment to Taiwan’s defense, US President Joe Biden gave his approval for $571 million in defense assistance to Taiwan less than a month ago.
While both China and Taiwan claim sovereignty over the island nation, Beijing has said that “such actions (by US companies) interfere in China’s internal affairs, and undermine China’s sovereignty and territorial integrity”. .
In addition to the sanctions, China has punished 28 US entities, mostly defense companies, by adding them to its export control list, and permanently banning them from exporting dual-use items.
The ministry said General Dynamics, Lockheed Martin Corporation and Boeing Defense, Space and Security were added “to protect national security and interests, and to meet international obligations such as non-proliferation.”
(Inputs from AFP)
