China banned 7 American military companies, what is the reason?

China has imposed sanctions on seven US military-industrial companies, including Boeing's subsidiary Insitu. This ban has been imposed because of the US providing military assistance to Taiwan. China has taken this decision because of the sale of weapons to Taiwan. China has imposed sanctions on a total of 10 US defense companies. China had taken action against the US this week. Now the ban imposed on 10 US companies is China's second action in less than a week.

China's Commerce Ministry said that subsidiaries of Lockheed Martin, General Dynamics and Raytheon have been added to the list of China's unreliable units. He said that these companies had sold weapons to Taiwan. This is an important issue for China. China considers Taiwan as its part.

These companies will not be a part of the new investment

These companies will be barred from engaging in import and export activities or making new investments in China. Their senior managers will also not be allowed to enter the country. This is not the first time this ban has been imposed on American companies.

China has previously imposed sanctions on many American companies, especially those that had a stake in selling weapons to Taiwan. However, another ban imposed in a short time shows China's effort to strengthen its stance towards Taiwan. Last week on Friday, seven American military-industrial companies were banned by China. China considers Taiwan a part of its territory. Therefore, China believes that it can also use force to bring it under its control.

Washington does not recognise Taiwan diplomatically. It is its strategic ally and biggest arms supplier. Last December, US President Joe Biden agreed to provide Taiwan with $571.3 million in defence support.