Beijing HITS BACK - China Punishes U.S. for $11 BILLION in Arms for Taiwan | Lena Petrova

World Affairs In Context

A major escalation is unfolding at the heart of US–China relations, and it could have serious consequences for global security, defence markets, and the world economy.

China has announced sweeping sanctions against major US defence companies and senior executives, including Boeing, Northrop Grumman, L3Harris, and Anduril Industries. These measures go far beyond symbolism: assets in China are frozen, business with Chinese entities is banned, and named executives are barred from entering the country.

So why now?

The sanctions come just days after Washington approved a $10+ billion arms package for Taiwan, potentially the largest weapons sale in US–Taiwan history. The deal includes missiles, drones, HIMARS launchers, self-propelled howitzers, and ATACMS systems—weapons already reshaping conflicts elsewhere, including Ukraine.

From Beijing’s perspective, this crosses a red line. China’s foreign ministry has once again stated that Taiwan is the “core of China’s core interests”, signaling zero tolerance for US military support to the island. While the US officially recognizes the One China Policy, its actions—through arms sales and strategic signaling—continue to contradict it.

In this video, we examine:

• Why Taiwan remains the most dangerous flashpoint in global geopolitics
• How US arms sales fuel sanctions, deterrence, and escalation
• What China’s response means for defence contractors and rare earth supply chains
• The growing risk of proxy conflict and great-power confrontation
• Why semiconductors, alliances, and Asia-Pacific security are all at stake

This is not a sudden crisis, but a steady escalation—more weapons, more sanctions, more military posturing. Each step raises the risk of open conflict between the world’s two largest powers.