The government of the People’s Republic of China announced sanctions on 20 U.S. defense-related companies in response to Washington’s approval of an $11 billion military aid package for Taiwan.
The measures target both companies and senior executives accused of facilitating arms transfers to Taipei in recent years. According to the official statement, the sanctions are applied under Articles 3, 4, 5, 6, 9, and 15 of China’s Foreign Anti-Sanctions Law. Companies affected include Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing in St. Louis, Gibbs & Cox, Advanced Acoustic Concepts, VSE Corporation, Teal Drones, Rhombus Power Inc., Lazarus Enterprises Inc., and others.
The Chinese government announced that all movable and immovable assets of the listed companies in China will be frozen. Organizations and individuals in China are also prohibited from conducting transactions, cooperation, or any other activities with these entities.
The sanctions extend to 10 senior executives, including Palmer Luckey, founder of Anduril Industries; John Cantillon, Vice President of L3Harris Technologies; Michael J. Carnovale, CEO of Advanced Acoustic Concepts; John A. Cuomo, CEO of VSE Corporation; Mitch McDonald, President of Teal Drones; Anshuman Roy, CEO of Rhombus Power Inc.; Dan Smoot, CEO of Vantor; Aaditya Devarakonda, CEO of Dedrone Holdings Inc.; Ann Wood, President of High Point Aerotechnologies; and Jay Hoflich, co-founder and CEO of ReconCraft.
The Ministry of Foreign Affairs of China stated that the sanctions respond to what it considers a direct violation of China’s sovereignty and territorial integrity. Beijing emphasized that any foreign military transfer to Taiwan constitutes interference in China’s internal affairs and poses “a threat to national security interests.”
