China announces countermeasures against U.S. military-related companies and senior executives in wake of U.S. ammunition sales to Taiwan

President of the People’s Republic of China, Xi Jinping, U.S. President Donald Trump

China has recently responded to the United States’ announcement of large-scale arms sales to Taiwan with a series of decisive countermeasures.

“This 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,” outlined a written release issued by the People’s Republic of China.

The release further stated that in accordance with Articles 3, 4, 5, 6, 9, and 15 of the Law of the People’s Republic of China on Countering Foreign Sanctions, China has formally decided to impose countermeasures targeting specific U.S. military-related companies and their senior executives involved in the arms sales.

A list of twenty U.S. companies has been designated for countermeasures: Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing in St. Louis, Gibbs & Cox, Inc., Advanced Acoustic Concepts, VSE Corporation, Sierra Technical Services, Inc., Red Cat Holdings, Inc., Teal Drones, Inc., ReconCraft, High Point Aerotechnologies, Epirus, Inc., Dedrone Holdings Inc., Area-I, Blue Force Technologies, Dive Technologies, Vantor, Intelligent Epitaxy Technology, Inc., Rhombus Power Inc., and Lazarus Enterprises Inc.

For these companies, the statement indicated that China has ordered the freezing of all movable and immovable properties and other assets within Chinese jurisdiction. Furthermore, all Chinese organizations and individuals are prohibited from engaging in any transactions, cooperation, or related activities with these entities.

As per the release, in addition to targeting corporate assets, China has identified ten senior executives associated with these companies for sanctions. Namely, Palmer Luckey, founder of Anduril Industries; John Cantillon, Vice President of L3Harris Technologies, Inc., Vice President and Principal Accounting Officer of L3Harris Maritime Services; Michael J. Carnovale, President and Chief Executive Officer of Advanced Acoustic Concepts; John A. Cuomo, President and Chief Executive Officer of VSE Corporation; Mitch McDonald, President of Teal Drones, Inc.; Anshuman Roy, founder and Chief Executive Officer of Rhombus Power Inc.; Dan Smoot, President and Chief Executive Officer of Vantor; Aaditya Devarakonda, Chief Executive Officer of Dedrone Holdings Inc.; Ann Wood, President of High Point Aerotechnologies; and Jay Hoflich, co-founder and Chief Executive Officer of ReconCraft.

The sanctions against these individuals involve the freezing of their (movable and immovable) properties and assets within China, as well as a ban on any form of cooperation or transactions with Chinese entities. Moreover, these executives will be denied visas or entry into China, including Hong Kong and Macao, effectively barring them from conducting any activities within Chinese territory.

These countermeasures are set to take effect from December 26, 2025.

List of Targets of Countermeasures

I. Companies

1.Northrop Grumman Systems Corporation

2.L3Harris Maritime Services

3.Boeing in St. Louis

4.Gibbs & Cox, Inc.

5.Advanced Acoustic Concepts

6.VSE Corporation

7.Sierra Technical Services, Inc.

8.Red Cat Holdings, Inc.

9.Teal Drones, Inc.