Beijing has targeted drone manufacturers over sales to Taiwan
China has imposed sanctions on six American military companies for their involvement in arms sales to Taiwan, the country’s foreign ministry announced on Friday. The ministry stated that the recent US decision to sell weapons to Taiwan “seriously violates the one-China principle,” interferes with China’s internal affairs, and undermines its sovereignty and territorial integrity.
As a result, China will freeze all assets held in the country by Anduril, AEVEX Aerospace, LKD Aerospace, Maritime Tactical Systems, Pacific Rim Defense, and Pinnacle Technology. Five executives from Anduril and AEVEX have also been personally sanctioned.
The sanctions prohibit Chinese nationals and residents from conducting business with these companies and deny their employees visas to enter China, including Hong Kong and Macao.
The six companies primarily manufacture drones – both aerial and maritime – and associated control systems. Last month, Washington announced a $360 million deal to provide drones and technology to Taipei.
Previously, Beijing sanctioned Lockheed Martin, a leading Pentagon contractor, for its role in the drone deal.
In 1949, Chinese nationalist forces retreated to Taiwan following their defeat in the civil war against the Communists. For the next three decades, Washington recognized the island’s government as the ‘Republic of China’ before acknowledging the People’s Republic of China in 1979.
Despite recognizing the ‘one China’ principle, the US has continued to supply Taiwan with weapons, ammunition, and equipment to “deter” a mainland “invasion.” The US also maintains informal diplomatic and economic ties with the island, which is a major supplier of semiconductors and chips for Western markets.
Beijing’s official policy advocates for a peaceful reunification of Taiwan, though the possibility of using force has not been ruled out if the island declares independence.