Beijing warned that it would ban any organization of the United States that participated in the Taiwan arms deal to do business in China. Past week, China influenced the United States to cancel the sale of $2.2 billion of arms to sale and accused Washington that it is interfering in domestic affairs of China.

The Pentagon previously informed the United States Congress that it is planning to make a big arms sale to Taiwan when it highlighted the deal to deliver anti-aircraft missiles, tanks, and other related equipment.

Spokesman of the foreign ministry of China, Geng Shuang told the journalists that any business ties with the firms of US that involved in the arms sale would break if the deal goes successful. Senior Jane’s analyst by HIS Markit, Jon Grevatt said that while Washington might consider the threat of China but there is a legal mandate for the United States to assist the defense capability of Taiwan and it would remain a priority.

He added, in the recent past, China threatened potential approvals against the companies of the US, whereas it failed to take any action. Grevatt also said that after giving these types of threats, China perceived to look for a conciliatory gesture from the United States else additional disrupting bilateral trade.

What Deal will cover?

The expected deal might include 250 Stinger missiles and 108 M1A2T Abrams tanks. Moreover, the sale might also consist of mounted machine guns with their ammunition. Though Geng declined to specify the names of any United States firms, commonly, General Dynamics and Honeywell are the leading names behind the deal of tanks whereas Raytheon is the builder of Stinger missiles.

In particular, Honeywell has a rapidly increasing presence with China. Grevatt of HIS Markit said that any type of ban might have a feasible impact on firms involved in sales of non-military items to China, for example, in the sectors of aerospace and auto.

The United States and Taiwan

During recent past days, Taiwan’s National Security Council’s deputy secretary-general, Tsai Ming-yen visited New York. The government website of the island stated that during his visit to NY, he met many lawmakers of the United States. He also called House speaker of the United States, Nancy Pelosi on the phone and do some discussions about the US-Taiwan relations and security issues of the region.

Officially, Taiwan recognized as the Republic of China; however, mainland China to its west identified as the People’s Republic of China. The policy of Beijing clearly stated that China would not make diplomatic relations with any state that officially accepts the island as a sovereign state.

Whereas, the US officially followed the one-China policy and negated to recognize Taiwan as a separate state. Furthermore, in 1982, the US gives out the Six Assurances, the six foreign policy principles aimed to assure Taiwan that it would continue to give support to the island even in the nonappearance of official diplomatic relations.