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China sanctions US defense firms over Taiwan deal

Updated Dec 28, 2025, 5:43pm EST
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An Anduril drone at a trade show
Ann Wang/Reuters

China has sanctioned 30 US defense firms and executives after Washington approved its largest-ever weapons deal with Taipei.

Northrop Grumman, a Boeing production unit, and the founder of Anduril Industries were among those sanctioned on Friday.

But US defense companies seldom do business in China, so the measures mostly signal Beijing’s disapproval and stop “short of a broader escalation,” Bloomberg wrote.

The $11.1 billion in arms could “markedly improve Taiwan’s defense capabilities if delivered in a timely manner,” the Institute for the Study of War wrote, though the US has struggled to meet previous timetables.

The deal may also reassure US lawmakers concerned by President Donald Trump’s sometimes conciliatory approach toward Beijing, The Wall Street Journal noted.

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