China has imposed sanctions on 20 U.S. defence firms and 10 individuals over Taiwan arms sales. Assets held in China will be frozen, with business ties and entry bans enforced. Beijing says Washington crossed a “red line” by approving a record $11.1 billion weapons package. The U.S. State Department has strongly objected, calling the move retaliatory and symbolic. China insists Taiwan remains a core national interest despite U.S. legal commitments to Taipei. The escalation deepens strategic rivalry as military tensions sharpen across the Taiwan Strait.