In a similar move to what the U.S. did to its Huawei Technologies Co Ltd, the Chinese government has just announced a potential wide-reaching ban against some U.S. companies.
While both countries claim to be authentic China, China uses the People’s Republic of China and the other uses the Republic of China.
China’s Foreign Ministry has just issued a warning that any U.S. company that sells arms to Taiwan will be banned from doing business and with China.
Earlier last week the Pentagon said the U.S. State Department had approved the sale of the weapons requested by Taiwan, including 108 General Dynamics Corp M1A2T Abrams tanks and 250 Stinger missiles, which are manufactured by Raytheon.
However, Reuters quoted Chinese Foreign Ministry spokesman Geng Shuang who said the arms sales were a violation of international law and harmed China’s sovereignty and national security.
“China’s government and Chinese companies will not cooperate or have commercial contacts with these U.S. companies,” he said.
The arms deal which is worth about $2.2 billion will see Taiwan getting its hands on American tanks, missiles and related equipment for its military.
While China has maintained its stance that Taiwan remained its territory, the move could further estrange the world’s second-largest economy with the U.S. given an existing tariff dispute that ensued since the beginning of the second quarter.