(Dec 26): China announced largely symbolic sanctions against 20 US defence companies and 10 executives, signalling its anger over Washington’s latest arms sales to Taiwan while stopping short of a broader escalation. The measures include freezing any assets the companies hold in China and banning them from doing business with Chinese entities. The sanctions follow what Beijing described as “large-scale” US arms sales to Taiwan. “Any enterprise or individual involved in arms sales to Taiwan will pay the price for their misguided actions.”Limited impactIn reality the impact of the measures is likely to be limited. China views Taiwan as a breakaway province that must ultimately be brought under its control, by force if necessary — a position Taipei firmly rejects.

Source: The Edge Markets December 26, 2025 10:49 UTC