China to Sanction US Companies Involved in Arm Sales to Taiwan

China plans to impose sanctions on U.S. companies that sell defense products to Taiwan, China’s Foreign Ministry spokesperson Geng Shuang said July 12.

The announcement came days after the State Department approved about $2 billion in potential arms sales to Taiwan, which was announced by the Pentagon’s Defense Security Cooperation Agency in a press release. The sale, requested by Taipei’s Economic and Cultural Representation Office, would include M1A2T Abrams tanks, M2 Chrysler Mount machine guns, ammunition, military vehicles and other defense-related items, the Pentagon said.

Shortly after the Pentagon’s announcement, Chinese officials reportedly voiced strong opposition to the sale, according to Reuters. But the country issued its strongest statement during a July 12 press conference, saying the sales “constitute a serious violation of international law” and threatening retaliatory action against U.S. businesses involved in the sales. The sales would damage China's “sovereignty and national security,” Geng said. “To safeguard our national interests, China will impose sanctions on the US enterprises involved in the above-mentioned arms sales to Taiwan.”

The Pentagon said the sale “serves U.S. national, economic, and security interests” by supporting Taiwan’s “efforts to modernize its armed forces and to maintain a credible defensive capability.” The sale will help maintain “military balance ... in the region,” the Pentagon said.