China recently announced that it will be giving sanctions to five American defense companies.
Sanctions for the American defense companies will also freeze their assets. (Photo: NPR)
Sanctions For American Defense Companies
China has announced sanctions on five American defense companies in response to US arms sales to Taiwan and US sanctions on Chinese companies and individuals.
The sanctions for the American defense companies will freeze the companies’ assets in China and prohibit Chinese organizations and individuals from doing business with them.
However, the impact of these sanctions on American defense companies is uncertain as American defense contractors typically do not sell to China.
China claims that these US actions have harmed its sovereignty and security interests, disrupted peace and stability in the Taiwan Strait, and violated the rights and interests of Chinese companies and individuals hence the sanctions for the American defense companies.
According to a published article by The Messenger, the announcement of the sanctions for the American defense companies comes days before the presidential election in Taiwan, where the relationship with China is a key issue.
The Chinese Foreign Ministry did not specify which arms deal or US sanctions prompted the action of giving sanctions to the American defense companies.
Unsure Future For American Defense Contractors
In a published article by AP News, it is uncertain how much of an impact these sanctions will have, as American defense contractors usually do not sell their products to China.
