China sanctions two US companies, General Atomics Aeronautical Systems and General Dynamics Land Systems, for "sales of weapons to the Taiwan region of China" Such continued US operations "seriously violate the 'One China' principle and the three joint communiqués, interfere in China's internal affairs, and undermine its sovereignty and territorial integrity," the Foreign Ministry said in a statement. Therefore, under the Law on Combating Foreign Sanctions, the two companies "will be frozen" movable and immovable assets in China and "their senior executives will be denied visas or entry," the statement said.
The two companies are based in San Diego, California, and San Francisco, California. The sanctions are in response to the U.S. President Barack Obama's decision to pull out of a multibillion-dollar arms deal with South Korea. The deal was agreed in March 2013, but was not formally announced until this week. The U.N. Security Council has approved the sale of arms to South Korea and Japan.