China Freezes Assets and Bans Transactions in Response to U.S. Arms Sales to Taiwan

China freezes assets, bans transactions
Implemented a week before Taiwan’s general elections

China has announced sanctions against U.S. defense companies that sold arms to Taiwan, according to an AP report on January 7.

The companies on the sanctions list include BAE Systems Land & Armament and four others.

The Chinese Foreign Ministry stated that their sanctions have resulted in freezing all assets held by certain companies in China. Furthermore, they announced that organizations and individuals in China are prohibited from engaging in transactions with these companies. The ministry continued, emphasizing that the U.S. measures adversely affect China’s sovereignty and security interests and threaten peace and stability in the Taiwan Strait. They affirmed the Chinese government’s unwavering commitment to defending national sovereignty, security, and territorial integrity and protecting the legitimate interests of Chinese companies and citizens.

Last month, the U.S. approved selling Taiwan approximately $300 million of communication and defense-related equipment. At the time, the Chinese government warned that it would take countermeasures against U.S. companies selling weapons to Taiwan. Interestingly, they made this decision just a week before Taiwan’s general elections, which are shaping to be a showdown between anti-China and pro-China candidates.

The AP News explained that China views U.S. arms sales to Taiwan as an interference in its internal affairs. Additionally, experts have expressed concerns that Taiwan could emerge as a significant point of contention, potentially leading to military conflict between the two superpowers.

By. Dae Young Ko