China Adds to Sanctions of U.S. Defense Contractors Over Taiwan Arms Sales

With the economic and geopolitical rivalry between the U.S. and China continuing to intensify, China has escalated economic penalties against major U.S. defense companies supplying weapons to Taiwan. China's broader strategy of using economic pressure to influence global affairs, particularly regarding its claim over Taiwan, includes sanctions on:

1. Blacklisting U.S. defense companies: China has labeled several companies as "unreliable," restricting their business operations within China.
2. Restricting access to key materials: China has barred certain U.S. companies from purchasing essential materials for both civilian and military production.
3. Imposing export controls: China has restricted the export of critical minerals like lithium and gallium, vital for modern technologies.

While the immediate impact of these sanctions may be limited, they serve as a warning that China may intensify its use of economic pressure in the future. This could involve broader trade restrictions, limitations on investment, and other measures designed to pressure the U.S. and its allies.

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