China Sanctions Some of America's Most Prominent Naval Technology Firms
In response to a new multi-billion dollar U.S. arms sale to Taiwan, China's government has announced sanctions on a swath of the American naval-technology industrial base, including Northrop Grumman, L3Harris Maritime Services, Advanced Acoustic Concepts, and several divisions of the defense drone conglomerate Anduril Industries.
The $10 billion package of U.S. arms for Taiwan was announced on December 18. If approved by Congress and fulfilled by U.S. manufacturers, it would be the biggest single U.S. defense sale to the island ever. It aligns with the administration's goal to encourage allies to defend themselves, as well as its objectives in promoting the American defense industrial base.
On December 26, China's foreign ministry objected to the record-setting arms sale in strong terms. The ministry said that it would sanction 20 U.S. defense tech companies in retaliation, asserting that the arms deal "seriously violates the one-China principle and the three China-U.S. Joint Communiqués, interferes in China’s internal affairs, and undermines China’s sovereignty and territorial integrity."
China's sanctions target some of the biggest names behind the U.S. Navy's technology. The list includes blue-chip companies like Boeing's St. Louis plant, builder of the F/A-18 Hornet figher series, and defense conglomerate Northrop Grumman, which provides countless weapons and sensor systems for the surface fleet and submarine fleet. L3Harris' division for ship repair and ship services is on the list, as is its VP, John Cantillon. Leidos' Gibbs & Cox naval architecture division - co-designer of the Constellation-class frigate - is on the list, as is sonar company Advanced Acoustic Concepts (a Thales division).
The most eye-catching names on the list are American drone builders. Headline name Anduril has already been sanctioned by China - a decision Anduril celebrated at the time - so the Chinese Foreign Ministry opted to list two more of its divisions and blacklisted its CEO, Palmer Luckey. Red Cat, the drone company that owns Black Sea drone boat technology developer Blue Ops, is named as well. Epirus, the developer of a microwave anti-drone system for the Marine Corps and Navy, is also on the list.
For all of the named firms and executives, any assets held within China will be frozen, and all Chinese companies and individuals will be prohibited from engaging in transactions or "cooperation" with them.
The U.S. has sold defensive weapons to Taiwan for decades, and formally recognizes China's "one China" policy. It also supports Taiwan's continued independence, through quiet diplomacy and military preparations - including reorienting the focus of both the Navy and Marine Corps to prepare for a Western Pacific conflict.