China on Friday imposed sanctions on 20 U.S. defense-related companies and 10 executives, following last week’s announcement by Washington of a major arms sale to Taiwan.

The measures freeze the companies’ assets in China and prohibit the sanctioned individuals and organizations from conducting any business in the country, according to the Chinese Foreign Ministry. The companies targeted include Northrop Grumman Systems Corporation, L3Harris Maritime Services, and Boeing’s St. Louis operations. Executives such as Palmer Luckey, founder of Anduril Industries, are also barred from entering China and have their assets frozen.

The U.S. arms package, valued at over $10 billion, would be the largest ever to Taiwan if approved by Congress. Beijing, which claims Taiwan as part of its territory, condemned the sale as a violation of diplomatic agreements and warned that the Taiwan issue is “the first red line” in China–U.S. relations. The ministry urged the U.S. to halt “dangerous moves of arming Taiwan” and warned that violators will “pay the price for the wrongdoing.”

Taiwan has become a major flashpoint between the two powers, with China increasing its military presence near the island, including frequent air and naval drills. U.S. federal law obliges Washington to assist Taiwan in its self-defense, a point of growing tension amid broader trade, technology, and human rights disputes between Beijing and Washington.

Source: AP