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Taiwan downplays impact of Chinese sanctions on European arms makers

Published by Global Banking & Finance Review

Posted on April 27, 2026

3 min read

· Last updated: April 27, 2026

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Taiwan downplays impact of Chinese sanctions on European arms makers
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TAIPEI, April 27 (Reuters) - Taiwan's defence minister on Monday downplayed the impact of Chinese sanctions on seven European companies over arms sales to the island, saying it was not the first time

Taiwan says China sanctions on European arms makers will not hit weapons sourcing

Impact and Implications of Chinese Sanctions on Taiwan's Defense Procurement

TAIPEI, April 27 (Reuters) - Taiwan's defence minister downplayed on Monday the impact of Chinese sanctions on seven European companies over arms sales to the island, saying it was not the first time China had taken such action and it would not affect Taipei's ability to source weapons.

Details of the Sanctions

China's Commerce Ministry banned exports on Friday of dual-use items to the seven companies over arms sales to Taiwan, placing them on its export control list, in a rare case of Europe-targeted, Taiwan-related sanctions.

European Arms Sales to Taiwan

Taiwan, which China views as its own territory, gets most of its weapons from the United States. Europe has not sold any big-ticket items like fighter jets to Taipei for around three decades, fearful of raising the ire of Beijing.

Taiwan's Response to Sanctions

Taking lawmaker questions in parliament, Taiwan Defence Minister Wellington Koo said it was not the first time China had implemented such measures.

"However, I think such an action, as I understand it, does not affect our ability to continue sourcing goods through relevant diversified channels," he added, without elaborating.

International Reactions and Broader Context

European Concerns and Support

While many countries, especially in Europe, are nervous about any defence cooperation with Taiwan due to fears of Chinese retaliation, Taipei has found an increasingly sympathetic ear in parts of Central and Eastern Europe, especially since Russia invaded Ukraine in 2022.

Four of the seven companies on the new Chinese list are Czech.

Previous Sanctions on U.S. Arms Makers

China has repeatedly sanctioned major U.S. arms makers over sales to Taiwan, most recently in December following the U.S. announcement of an $11 billion weapons sale package to the island.

Japan's Policy Change and Its Impact

Japan Scraps Arms Exports Controls

JAPAN SCRAPS ARMS EXPORTS CONTROLS

Potential for Taiwan-Japan Defense Cooperation

Asked whether Taiwan could start buying weapons from Japan, after Tokyo last week scrapped restrictions on overseas arms sales, Koo said the recipients of weapons exports must be countries that have signed an defence equipment and technology transfer agreement with Japan, which Taiwan has not done.

When asked whether that could happen one day, Koo responded: "In the future, no possibility can be ruled out. I think I can only say that at present, no transfer agreement exists".

Regional Reactions to Japan's Policy Shift

While countries such as the Philippines welcomed the change, China expressed deep concern.

Relations between Japan and China have been at a low ebb since Japanese Prime Minister Sanae Takaichi said in November that a Chinese attack on Taiwan threatening Japan's survival could trigger a military response.

(Reporting by Ben Blanchard and Roger Tung; Editing by Kate Mayberry and Raju Gopalakrishnan)

Key Takeaways

  • China has banned exports of dual-use goods to seven European firms cited for involvement in arms sales to Taiwan—a rare instance of Europe-targeted, Taiwan-related sanctions. (scmp.com)
  • The affected companies include Germany’s Hensoldt AG, Belgium’s FN Browning/FN Herstal, and four Czech firms such as Excalibur Army. Many of these firms say they do not depend on Chinese dual-use tech and expect limited impact. (taiwannews.com.tw)
  • Taiwan's defence minister Wellington Koo told lawmakers on April 27 that similar blacklist actions by China have occurred before, and the current sanctions won’t compromise Taiwan’s ability to procure weapons through diversified channels. (taiwannews.com.tw)
  • This comes amid heightened tension: in December 2025, China had already sanctioned 20 U.S. defence firms and 10 executives after Washington approved an $11 billion arms sale to Taiwan—one of the largest ever. (defensenews.com)
  • Western firms and governments are increasingly wary of defence ties with Taiwan due to risk of Chinese retaliation, although some Central and Eastern European countries have shown growing willingness to engage since Russia’s 2022 invasion of Ukraine. (taiwannews.com.tw)

References

Frequently Asked Questions

Why did China sanction European arms manufacturers?
China sanctioned seven European arms makers over their arms sales to Taiwan, placing them on its export control list.
How does Taiwan source its weapons?
Taiwan primarily sources weapons from the United States and also uses diversified channels for procurement.
Will Chinese sanctions affect Taiwan’s ability to buy weapons?
According to Taiwan’s defence minister, the sanctions will not affect Taiwan’s ability to continue sourcing weapons.
Which European companies have been sanctioned by China?
China sanctioned seven European companies, including four from the Czech Republic, due to their arms sales to Taiwan.
How has Europe responded to arms sales to Taiwan?
Europe has generally avoided big-ticket arms sales to Taiwan to avoid tensions with China, but some support has emerged in Central and Eastern Europe.

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