China sanctions five US defence companies over sales to Taiwan – The Australian Financial Review Feedzy

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Ken Moritsugu
Jan 7, 2024 – 5.20pm

Beijing China announced sanctions on Sunday on five American defence-related companies in response to United States arms sales to Taiwan and US sanctions on Chinese companies and individuals.

The sanctions will freeze any property the companies have in China and prohibit organisations and individuals in China from doing business with them, the Foreign Ministry said in a statement.

Taiwanese soldiers take part in military exercises in New Taipei City. Bloomberg

It was unclear what impact, if any, the sanctions would have on the companies: BAE Systems Land and Armaments, Alliant Techsystems Operations, AeroVironment, ViaSat, and Data Link Solutions. Such sanctions are often mostly symbolic, as American defence contractors generally don’t sell to China.

The Foreign Ministry said the US moves harmed China’s sovereignty and security interests, undermined peace and stability across the Taiwan Strait, and violated the rights and interests of Chinese companies and individuals.

“The Chinese government remains unwavering in our resolve to safeguard national sovereignty, security and territorial integrity and protect the lawful rights and interests of Chinese companies and citizens,” the ministry statement said.

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In December, the US approved $US300 million ($446.6 million) in equipment, training and equipment repair for Taiwan to maintain its command, control and military communications capabilities.

At the time, Foreign Ministry spokesperson Wang Wenbin warned that China would take countermeasures against companies involved in arms sales to Taiwan.

The US Defence Department said the sale would support the modernisation of Taiwan’s armed forces and the maintenance of a credible defence. “The proposed sale will improve the recipient’s capability to meet current and future threats by enhancing operational readiness,” the Pentagon’s Defence Security Co-operation Agency said.

Taiwan is a major flashpoint in US-China relations that analysts worry could explode into military conflict between the two powers. China regards Taiwan, a self-governing island off its east coast, as a renegade province that must come under Beijing’s control at some point. It views US arms sales to Taiwan as interference in its domestic affairs.

The Chinese military regularly sends fighter planes and ships into and over the waters around Taiwan, in part to deter the island’s government from declaring formal independence. An invasion doesn’t appear imminent, but the constant military activity serves as a reminder that the threat is ever-present.

The US switched diplomatic recognition from Taiwan to China in 1971, but it is bound by its own laws to ensure that Taiwan can defend itself. America and its allies sail warships through the Taiwan Strait, a 160-kilometre-wide waterway that separates the island from China.

AP

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