China ForeignMin Spokesman Geng: China to impose sanctions on US companies for arms sales to Taiwan

Adding to the ongoing US-China trade tensions, the Chinese Foreign Ministry Spokesman Geng Shuang said on Wednesday, China will take all necessary measures to defend its own interests including imposing sanctions on US companies involved in the planned arm sales to Taiwan.

Key Quotes (via Xinhua):

China firmly opposes the plan and has lodged solemn representations and protests to the US side.

The US arms sales plan seriously violated international laws and basic norms governing international relations, as well as the one-China principle and the three China-U.S. joint communique, especially the August 17 Communique.

[Such a move] constitutes severe interference in China's internal affairs, and undermines China's sovereignty and security interests.

 China has firm determination to safeguard its own national sovereignty, unity and security.

Urge the US to "immediately cancel the aforementioned arms sales plan, cease arms sales to Taiwan and sever military ties with the island.

Otherwise, all the ensuing consequences will be born by the US side.

This comes after the US Defense Department officially notified the US Congress of the plan to sell 66 F-16 fighters and relevant equipment worth around 8 billion US dollars to Taiwan and to provide support.

Any escalation on the US-China trade front, in the face of the Taiwan spat, is likely to trigger a renewed risk-aversion wave across the board and boost the demand for the safe-havens at the expense of the risk assets.

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