China has announced strong countermeasures against several US military related companies after Washington approved a large arms package for Taiwan. Beijing said the move violates the one China principle and interferes in its internal affairs.
According to the Ministry of Foreign Affairs, the sanctions are issued under the Law of the Peoples Republic of China on Countering Foreign Sanctions. The decision took effect on 26 December 2025.
Which companies are targeted
China listed 20 companies as targets of the sanctions. These include Northrop Grumman Systems Corporation, L3Harris Maritime Services, the Boeing unit in St Louis, Gibbs and Cox, Advanced Acoustic Concepts, VSE Corporation, Sierra Technical Services, Red Cat Holdings, Teal Drones, ReconCraft, High Point Aerotechnologies, Epirus, Dedrone Holdings, Area 1, Blue Force Technologies, Dive Technologies, Vantor, Intelligent Epitaxy Technology, Rhombus Power, and Lazarus Enterprises.
China said that movable and immovable assets of these companies inside China will be frozen.
Chinese organizations and individuals are prohibited from doing business, cooperation, or any economic activities with them.
Sanctions on senior executives
Along with the companies, 10 senior executives were also named. The list includes Palmer Luckey, founder of Anduril Industries, John Cantillon of L3Harris Technologies, Michael J Carnovale of Advanced Acoustic Concepts, John A Cuomo of VSE Corporation, Mitch McDonald of Teal Drones, Anshuman Roy of Rhombus Power, Dan Smoot of Vantor, Aaditya Devarakonda of Dedrone, Ann Wood of High Point Aerotechnologies, and Jay Hoflich of ReconCraft.
Their assets in China will be frozen. They are banned from entering mainland China, Hong Kong, and Macau. Chinese companies and individuals cannot cooperate or transact with them.
Why China acted
Beijing says the US arms sale harms Chinese sovereignty and regional stability. China views Taiwan as part of its territory and argues that foreign military support encourages separatist forces.
The ministry stated that the measures are necessary to defend national interests and warned the United States to stop military connections with Taiwan.
What happens next
These sanctions increase pressure in already tense relations between China and the United States.
Analysts will watch how affected firms adjust their operations and whether Washington responds with new steps.
