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Taiwan: China Threatens Sanctions Against U.S. Companies Over F-16 Sale to Taiwan

1 MIN READAug 21, 2019 | 13:56 GMT

What Happened: The Chinese government has threatened to impose sanctions against U.S. companies that participate in the sale of F-16 fighter jets to Taiwan if the United States decides to proceed with the deal, the BBC reported Aug. 21.

Why It Matters: China's threat underscores Beijing's opposition to the transfer, as it previously stated that it would impose penalties against firms involved in an earlier arms sale that included 108 General Dynamics Corp. M1A2T Abrams tanks.

Background: The $8 billion transfer of F-16 fighter jets to Taiwan marks the largest arms sale to the self-governing island in a decade. The U.S. Congress still has to approve the deal, although the transaction is expected to face little opposition from U.S. lawmakers.

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