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Sun Jul 21, 2019, 08:34 PM

China's sanctions threat against US firms after Taiwan arms deal

China’s sanctions threat against US firms after Taiwan arms deal casts shadow over Gulfstream’s ‘optimism’

SCMP by Cissy Zhou
July 18

General Dynamics, and its subsidiary Gulfstream Aerospace, as well as Honeywell and Oshkosh Corporation, were named in an article posted on the official WeChat channels of both the People’s Daily and state broadcaster CCTV on Sunday, criticising their involvement in the sale of tanks and missiles to Taiwan.

Last week, despite strong opposition from Beijing, the US State Department approved a US$2.2 billion arms sale to Taiwan, which includes 108 M1A2T Abrams tanks, 250 Stinger missiles and 16 M1070A1 heavy equipment transporters.

The Chinese authority has not announced any details of the potential sanctions, but on Monday Foreign Ministry spokesman Geng Shuang said that “China's government and Chinese companies will not cooperate or have commercial contacts with these US companies”, without naming any specific firms.

“The sanctions mentioned by the Foreign Ministry have a legal basis, because the US arms sale to Taiwan has violated the Three Joint Communiqués between the US and China, which is to say, the arms sale do not agree with the one China’ principle,” said Shi Wanlin, a lawyer at Dentons Beijing.


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