Beijing considers Taiwan as part of China, but the U.S. has a decades-old agreement to assist the East Asian state.
Four US-made F-16 Apache attack helicopters launch missiles during the 35th "Han Kuang" military drill in southern Taiwan's Pingtung county on May 30, 2019.Beijing has threatened to ban any U.S. firm involved in selling arms to Taiwan from doing business in China.
China's foreign ministry spokesman Geng Shuang reportedly told journalists in Beijing on Monday, that business ties with U.S. firms involved in the sale would be ended if the deal went through. Grevatt added that China has previously threatened potential sanctions against U.S. firms but has failed to take any action.
Although Geng refused to specify any U.S. companies, it is known that Honeywell and General Dynamics are the major names behind the tanks while Raytheon is the manufacturer of Stinger missiles.IHS Markit's Grevatt said any ban "could feasibly impact" companies involved in sales of non-military products to China such as within the auto and aerospace sectors.
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