China has escalated its response to U.S. arms support for Taiwan by sanctioning 20 American defense companies, framing the move as a direct countermeasure to Washington’s approval of a record arms package earlier this month. 

On December 26, 2025, China’s Ministry of Foreign Affairs said the sanctions were imposed in reaction to what it described as a serious violation of its sovereignty and territorial integrity. 

The ministry reiterated that U.S. arms sales to Taiwan send “wrong signals” to pro-independence forces and undermine regional stability.

The measures include freezing any assets held in China by the targeted companies and individuals, banning transactions and cooperation with Chinese entities, and restricting entry into China for certain executives. 

While such penalties are often described as symbolic due to the limited exposure of most U.S. defense firms to the Chinese market, Beijing has used them consistently to signal political resolve.

“Largest-Ever” Taiwan Package

The sanctions follow U.S. notifications to Congress on December 17–18, 2025, of potential arms sales to Taiwan totaling approximately $11.1 billion. 

According to the U.S. Defense Security Cooperation Agency, the package is the largest single arms approval for Taiwan to date. 

It includes up to 1,050 Javelin anti-tank missiles valued at roughly $375 million, ALTIUS-700M and ALTIUS-600 loitering munitions worth about $1.1 billion, and spare parts for AH-1W SuperCobra helicopters estimated at $96 million.

The package also covers 82 HIMARS launchers with 420 ATACMS missiles and associated pods at a cost of about $4.05 billion, 60 M109A7 self-propelled howitzers priced near $4 billion, and up to 1,545 TOW-2B anti-tank missiles valued at approximately $353 million. 

Additional elements include tactical network software and missile support packages, bringing the total to $11.1 billion.

China’s Foreign Ministry said this latest round of sanctions fits a longstanding pattern of countermeasures taken whenever the United States approves arms sales to Taiwan. 

In late 2024 and early 2025, Beijing sanctioned between 7 and 13 U.S. firms following smaller packages. 

By targeting 20 companies in one move, the December 26 action represents one of the largest batches announced so far.

Officials did not release a complete public list of sanctioned entities, but reports cited defense-related subsidiaries and production units linked to major U.S. firms, including Boeing-associated operations. The ministry emphasized that the measures are lawful under Chinese regulations governing counter-sanctions.

Beijing framed the sanctions not as economic coercion but as a political signal reinforcing its position on Taiwan and the “One China” principle. Taiwan’s Ministry of National Defense welcomed the U.S. approvals, saying the systems strengthen deterrence and self-defense. Washington said the package supports Taiwan’s security without altering the regional military balance.

China rejected that characterization, warning that continued arms sales risk further destabilization. The December 26 announcement underscores how Taiwan remains a core irritant in U.S.–China relations, with arms transfers acting as a recurring trigger for diplomatic and economic retaliation.