TAIPEI (Taiwan News) — China announced sanctions against Boeing and two other U.S. defense companies on Monday (May 20) for arms sales to Taiwan, the same day Taiwan inaugurated its new president, Lai Ching-te (賴清德).

China’s Ministry of Commerce placed Boeing’s Defense, Space & Security unit, General Atomics Aeronautical Systems, and General Dynamics Land Systems on its “unreliable entities” list, AP reported. The move forbids their further investment in China. 

The Ministry of Commerce said senior executives from the three U.S. companies are prohibited from entering China, while their work permits will be revoked, along with their visitor and residential status. Meanwhile, related applications they submit will not be approved, according to Reuters.  

In April, Beijing froze General Atomics Aeronautical Systems and General Dynamics Land Systems assets within China, per AP. 

According to corporate filings, General Dynamics operates six Gulfstream and jet aviation services operations in China. General Dynamics also makes the Abrams tank, which Taiwan has purchased to replace its aging tank fleet. 

Meanwhile, General Atomics manufactures Predator (MQ-1) and Reaper (MQ-9) drones used by the U.S. military. Taiwan has purchased four of the MQ-9B “SeaGuardian” variants.

Taiwan is facing increasing military aggression from China. Since September 2020, China has increased its use of gray zone tactics by incrementally increasing the number of military aircraft and naval ships operating around Taiwan.