AsianFin--China's Ministry of Commerce (MOFCOM) on Monday announced sanctions against Boeing and two other defense companies for their arms sales to Taiwan region.

This is the latest in a series of sanctions Beijing has imposed in recent years against U.S. defense firms supplying weapons to Taiwan region.

The ministry placed Boeing’s Defense, Space & Security unit, General Atomics Aeronautical Systems, and General Dynamics Land Systems on an “unreliable entities” list. This move restricts their further investment in China and includes travel bans on senior management of these companies.

Taiwan’s new leader Lai Ching-te has committed to bolstering the region’s security through the acquisition of advanced fighters and technology, and by enhancing its defense industry.

In April, China froze the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held within China. General Dynamics, which operates several Gulfstream and jet aviation services in China, remains heavily dependent on foreign aerospace technology while striving to build its own capabilities.

General Atomics, known for producing Predator and Reaper drones used by the U.S. military, has an unclear role regarding its arms sales to Taiwan region.

In 2022, China sanctioned Ted Colbert, the president and CEO of Boeing Defense, Space & Security, following the company’s $355 million contract to supply Harpoon missiles to Taiwan region.

In February 2023, China placed U.S. defense contractors Lockheed Martin Corp and Raytheon Missiles & Defense to its unreliable entities list. However, it was found that U.S. firm Caplugs evaded regulations prescribed under the “unreliable entities” list by transferring commodities purchased from China to companies on China's unreliable entities list, MOFCOM said.

MOFCOM urged Caplugs to take immediate actions to ensure that it will not transfer related goods, technologies and services imported from China to companies on the unreliable entities list, and submit relevant evidence. Otherwise, the Chinese authorities will take measures against the company in accordance with laws and regulations.

Chinese foreign ministry spokesperson Mao Ning told a press briefing in February that the U.S. arms sales to Taiwan seriously violate the one-China principle and the stipulations of the three China-U.S. joint communiques, particularly the August 17 Communique of 1982.

"Such sales undermine China's sovereignty and security interests, and harm China-U.S. relations and peace and stability across the Taiwan Straits," Mao said.

Mao said China urges the U.S. to abide by the one-China principle and the three China-U.S. joint communiques, stop arms sales to and cut military contact with Taiwan, and stop creating factors that could heighten tensions in the Taiwan Straits.