China Imposes Sanctions on Seven Companies in Response to U.S. Military Aid for Taiwan

The Chinese government announced sanctions against seven companies on Friday in retaliation for the United States’ recent decision to provide military equipment and aid to Taiwan. The sanctions follow the approval of the U.S. defense budget, which Beijing criticized for containing “multiple negative stances against China.”

Taiwan, a self-governing island claimed by China, continues to be a focal point of tensions between the two nations. The sanctioned companies include Insitu Inc., Hudson Technologies Co., Saronic Technologies, Inc., Raytheon Canada, Raytheon Australia, Aerkomm Inc., and Oceaneering International Inc. Any assets these companies hold in China will be frozen, and Chinese entities are prohibited from engaging in business with them.

This development comes after U.S. President Joe Biden authorized up to $571 million in military aid and services for Taiwan, alongside an additional $295 million weapons package. These actions align with a broader U.S. defense strategy that directs resources toward countering China’s growing influence, including increased military spending and bans on purchasing Chinese-made military equipment like drones.

China criticized the U.S. for its defense spending, calling it “hegemonic” and an attempt to justify a confrontational posture. Meanwhile, tensions in the Taiwan Strait remain high, with Taiwan reporting increased Chinese military drills near its waters.