Beijing

China on Friday sanctioned two US defence companies— Lockheed Martin and Northrop Grumman—for supplying arms to Taiwan.

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In a press conference, China’s foreign ministry spokesperson Mao Ning said that the punitive measures are being taken under the country's Anti-Foreign Sanctions Law.

"We urge the US side to effectively abide by the one-China principle... cease US-Taiwan military liaison and stop arming Taiwan, or else it will be subject to a resolute and forceful retaliation by the Chinese side," she said.

The spokesperson named Lockheed Martin Corp's branch in Missouri as the prime contractor claiming that it sold arms to Taiwan on August 24, and added that Northrop Grumman repeatedly participated in the sale of weapons to Taipei.

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"According to the Anti-Foreign Sanctions Law of the PRC, China has decided to impose sanctions on the above two US military companies," she said. 

This is not the first time that China has imposed sanctions on US companies for the sale of arms to Taiwan. However, it is unknown how the proposed sanctions would work since neither company sells to China.

US increases military aid to Taiwan 

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The United States Congress allows the supply of weapons to the self-governing nation under the Taiwan Relations Act.

Earlier, the US used to sell arms rather than provide them as an aid, but in August, the administration for the first time approved direct US military aid to Taiwan under an assistance programme aimed at foreign governments. 

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Last month, US President Joe Biden approved the transfer of up to $80 million in funds to Taiwan under the Foreign Military Financing programme, according to a notification sent to Congress.

China military drills

The announcement of sanctions comes at a time when China has deployed warplanes and navy ships around the democratically governed island, and a Chinese naval formation led by the aircraft carrier Shandong passed within 60 nautical miles (111 km) of Taiwan's southeast.

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Taiwan has also reported dozens of Chinese fighters, bombers and other aircraft flying into its air defence zone this week.

Beijing views the self-ruled island of Taiwan as a breakaway province that must accept Chinese sovereignty and has never renounced the use of force to achieve that goal.

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