China Announces Sanctions and Naval Drills Around Taiwan
In response to a new multi-billion dollar U.S. arms sale to Taiwan, China's government has announced sanctions on a swath of the American naval-technology industrial base, including Northrop Grumman, L3Harris Maritime Services, Advanced Acoustic Concepts, and several divisions of the defense drone conglomerate Anduril Industries. In a follow-on announcement Sunday, China's Eastern Theater Command announced that it would hold mass military drills around the island to send a message, including simulated "sea-air combat readiness patrol, joint seizure of comprehensive superiority, blockade on key ports and areas, as well as all-dimensional deterrence outside the island chain."
The $10 billion package of U.S. arms for Taiwan was announced on December 18. If approved by Congress and fulfilled by U.S. manufacturers, it would be the biggest single U.S. defense sale to the island ever. One week later, China's foreign ministry said that it would sanction 20 U.S. defense tech companies in retaliation, asserting that the arms deal "seriously violates the one-China principle . . . and undermines China’s sovereignty and territorial integrity."
The U.S. has sold defensive weapons to Taiwan for decades, and formally recognizes China's "one China" policy. It also supports Taiwan's continued independence, through quiet diplomacy and military preparations - including reorienting the focus of both the Navy and Marine Corps to prepare for a Western Pacific conflict.
China's sanctions target some of the biggest names behind the U.S. Navy's technology. The list includes blue-chip companies like Boeing's St. Louis plant, builder of the F/A-18 Hornet fighter series, and defense conglomerate Northrop Grumman, which provides countless weapons and sensor systems for the surface fleet and submarine fleet. L3Harris' division for ship repair and ship services is on the list, along with one senior executive. Leidos' Gibbs & Cox naval architecture division - co-designer of the Constellation-class frigate - is listed too, as is sonar company Advanced Acoustic Concepts (a Thales division).
The most eye-catching names on the list are American drone builders. Headline name Anduril has already been sanctioned by China - a decision Anduril celebrated at the time - so the Chinese Foreign Ministry opted to list two more of its divisions and blacklisted its CEO, Palmer Luckey. Red Cat, the drone company that owns Black Sea drone boat technology developer Blue Ops, is named as well. Epirus, the developer of a microwave anti-drone system for the Marine Corps and Navy, is also on the list.
For all of the named firms and executives, any assets held within China will be frozen, and all Chinese companies and individuals will be prohibited from engaging in transactions or "cooperation" with them.
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