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China targets US companies over arms sales to Taiwan

This article is more than 12 months old

BEIJING China's government and Chinese companies will cut business ties with US companies selling arms to Taiwan, China's Foreign Ministry said yesterday, declining to give details of the sanctions in a move likely to worsen already poor ties with Washington.

China claims self-ruled and democratic Taiwan as its own and has never renounced the use of force to bring it under Beijing's control.

China regularly describes Taiwan as the most sensitive issue in its relations with the US.

Last week, the Pentagon said the US State Department had approved the sale of weapons requested by Taiwan.

This included 108 General Dynamics Corp M1A2T Abrams tanks and 250 Stinger missiles, which are manufactured by Raytheon.

China said on Friday it would impose sanctions on US companies selling weapons to Taiwan but did not elaborate.

The latest deal involves US$2.2 billion (S$3 billion) worth of tanks, missiles and related equipment for Taiwan.

Chinese Foreign Ministry spokesman Geng Shuang said: "China's government and Chinese companies will not cooperate or have commercial contacts with these US companies.

"I can't reveal the details at the moment.

"But believe this - Chinese people always stress standing by their word."

On Sunday, the ruling Communist Party's official People's Daily posted an article on its WeChat account identifying US companies that could be vulnerable to sanctions.

They included Honeywell International, which makes the engines for the Abrams tanks, and private jets maker Gulfstream Aerospace, which is owned by General Dynamics.

China is an important market for both Honeywell and Gulfstream. - REUTERS

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