China Sanctions Boeing, Northrop, Anduril Founder

China on Friday imposed sanctions on 20 U.S. defense companies and 10 executives, escalating tensions with Washington over Taiwan and deepening the broader U.S.-China strategic rivalry.

The measures target firms including Northrop Grumman Corp. (NYSE:NOC), L3Harris Technologies, Inc.’s (NYSE:LHX), Maritime Services, Boeing Co.’s (NYSE:BA) St. Louis–based defense unit, Vantor, formerly known as Maxar Intelligence, and Palmer Luckey, founder of Anduril Industries. Luckey’s startup, which focuses on preparing for a potential conflict with China, owns three of the sanctioned companies.

Beijing said it will freeze the assets of the affected firms, block them from conducting business in China, and bar the executives from entering mainland China, Hong Kong, and Macau, the Wall Street Journal reported Friday.

Also Read: Taiwan Semiconductor Could Pour $200 Billion Into US: Lutnick

While the sanctions are largely symbolic, given limited China exposure for U.S. defense contractors, they underscore Beijing’s claim over Taiwan, which it considers part of its territory and has vowed to take by force if necessary.

Arms Sale to Taiwan Triggers Response

The move follows sharp criticism from Beijing after Washington approved an $11.15 billion arms sale to Taiwan. China accused the U.S. of violating the one-China principle.

Foreign Ministry spokesperson Lin Jian called the decision a serious breach of bilateral agreements. China’s embassy in Washington echoed the condemnation, with both describing Taiwan as the “core of China’s core interests” and the most sensitive issue in U.S.-China relations.

Regional tensions have also risen in recent weeks, including U.S. B-52 bomber patrols with Japanese fighter jets near the Sea of Japan following Chinese-Russian military drills.

Taiwan Semiconductor at Center of Tech Rivalry

Taiwan Semiconductor Manufacturing Company Ltd (NYSE:TSM) remains central to the U.S.-China tech conflict, with both sides viewing the chipmaker as a strategic asset as Taiwan seeks to safeguard its security and economy.

The Trump administration aims to cut reliance on Taiwan’s advanced chips by promoting domestic production, including Taiwan Semiconductor’s Arizona plants, while using export controls to limit China’s access to cutting-edge semiconductors. Washington says the strategy strengthens supply chains and deepens security ties with Taiwan, even as Taipei worries it could weaken its “silicon shield.”

China views Taiwan Semiconductor as vital to its economic, technological, and military goals and has stepped up pressure through economic competition, talent poaching, cyber activity, and military signaling.

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