China Sanctions 5 US Defense Companies in Response to US Sanctions and Arms Sales to Taiwan

FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)
FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)
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China Sanctions 5 US Defense Companies in Response to US Sanctions and Arms Sales to Taiwan

FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)
FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)

China announced sanctions Sunday on five American defense-related companies in response to US arms sales to Taiwan and US sanctions on Chinese companies and individuals.
The sanctions will freeze any property the companies have in China and prohibit organizations and individuals in China from doing business with them, the Foreign Ministry said in a statement posted online, The Associated Press said.
It was unclear what impact, if any, the sanctions would have on the companies, BAE Systems Land and Armaments, Alliant Techsystems Operations, AeroVironment, Viasat and Data Link Solutions. Such sanctions are often mostly symbolic as American defense contractors generally don't sell to China.
The Foreign Ministry said the US moves harmed China’s sovereignty and security interests, undermined peace and stability across the Taiwan Strait and violated the rights and interests of Chinese companies and individuals.
“The Chinese government remains unwavering in our resolve to safeguard national sovereignty, security and territorial integrity and protect the lawful rights and interests of Chinese companies and citizens,” the ministry statement said.
The announcement was made less than a week ahead of a presidential election in Taiwan that is being contested in large part over how the government should manage its relationship with China, which claims the self-governing island as its territory and says it must come under its rule.
The Chinese Foreign Ministry did not specify which arms deal or which US sanctions China was responding to, though spokesperson Wang Wenbin had warned three weeks ago that China would take countermeasures following the US government's approval of a $300 million military package for Taiwan in December.
The deal includes equipment, training and equipment repair to maintain Taiwan's command, control and military communications capabilities.
The US said the sale would support the modernization of Taiwan's armed forces and the maintenance of a credible defense. “The proposed sale will improve the recipient’s capability to meet current and future threats by enhancing operational readiness,” a news release from the Pentagon's Defense Security Cooperation Agency said.
Taiwan is a major flashpoint in US-China relations that analysts worry could explode into military conflict between the two powers. China says that US arms sales to Taiwan are interference in its domestic affairs.
The Chinese military regularly sends fighter planes and ships into and over the waters around Taiwan, in part to deter the island's government from declaring formal independence. An invasion doesn't appear imminent, but the constant military activity serves as a reminder that the threat is ever-present.
The US switched diplomatic recognition from Taiwan to China in 1979, but it is bound by its own laws to ensure that Taiwan has the ability to defend itself. America and its allies sail warships through the Taiwan Strait, a 160-kilometer (100-mile) -wide waterway that separates the island from China.



Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran Summons French, German, Italian, UK Envoys Over Support for Protests

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran on Monday summoned diplomats in Tehran representing France, Germany, Italy and the UK to object to what it described as support by those countries for the protests that have shaken the country, its foreign ministry said.

The diplomats were shown a video of the damage caused by "rioters" and told their governments should "withdraw official statements supporting the protesters", the ministry said in a statement quoted by state television.

In Paris, the French foreign ministry confirmed that "European ambassadors" had been summoned by Iran.


Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
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Iran’s Traders, Frustrated by Economic Losses, Turn Against Clerics

 Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters
Cars burn in a street during a protest over the collapse of the currency's value, in Tehran, Iran, January 8, 2026. Stringer/WANA (West Asia News Agency) via Reuters

Iran's bazaar merchants, the trader class who were the financial backbone of the 1979 revolution, have turned against the clerics they helped bring to power, fueling unrest over an economy that has morphed into full-blown anti-government protests.

Frustration among bazaar merchants, from small-scale shopkeepers to large wholesale traders, has grown as their political and economic clout in Iran has diminished over the decades while the elite Revolutionary Guards have tightened their grip on the economy, building sprawling and tightly held networks of power.

"We are struggling. We cannot import goods because of US sanctions and because only the Guards or those linked to them control the economy. They only think about their own benefits," said a trader at Tehran’s centuries-old Grand Bazaar, speaking on condition of anonymity.

The wave of protests that has engulfed the country, posing one of the toughest challenges ever to the clerical leadership, erupted in late December in Tehran's Grand Bazaar, where hundreds of shopkeepers denounced the sharp fall in the rial currency.

The demonstrations quickly swelled and turned political, challenging the Islamic Republic's legitimacy. Protesters burned images of Supreme Leader Ali Khamenei and chanted "Death ‌to the dictator" - ‌undeterred by security forces armed with tear gas, batons, and, in many cases, live ammunition.

Iran’s ‌rulers, ⁠while acknowledging economic difficulties, have ‌blamed their longtime foes the US and Israel for fomenting the unrest. They appear intent on holding onto power at any cost, backed by a security apparatus refined over decades of suppressing ethnic revolts, student movements, and protests over economic hardship and social freedoms.

A combination of international sanctions and the Guards' sprawling economic empire has limited the government's ability to ease the dire economic situation.

Tehran-based analyst Saeed Laylaz said the government has lost control over the situation.

"What is striking is that the unrest began in the bazaar. For merchants, the core issue isn’t inflation - it’s price volatility, which leaves them unable to decide whether to buy or sell," he said.

Economic disparities between ordinary Iranians and the clerical and security elite, along with economic mismanagement and state corruption - ⁠reported even by state media - have fanned discontent at a time when inflation is pushing the price of many goods beyond the means of most people.

Iran's rial currency has lost nearly ‌half its value against the dollar in 2025, with official inflation reaching 42.5% in December.

CONTROL ‍OF SECTORS FROM OIL TO CONSTRUCTION

Created by the republic's ‍late founder Khomeini, the Guards first secured an economic foothold after the Iran-Iraq war in the 1980s, when clerical rulers allowed them ‍to invest in leading Iranian industries.

Their influence expanded exponentially over decades, benefiting from Khamenei's full backing and from opportunities created by Western sanctions, which effectively excluded Iran from the global financial and trading system.

The Guards now control vast sectors of the economy, from oil to transportation, communications, and construction.

Another trader said the crisis was not over, as the Guards have long proved adept at defending their economic interests.

"The government wants to resolve the problem, but it lacks the means and power in this system. The economy is not controlled by the government," said the trader, a 62-year-old carpet seller in Tehran.

All aspects of the country's sanctions-hit oil business have come under the growing influence of the ⁠Guards - from the shadow fleet of tankers that secretly ship sanctioned crude, to logistics and front companies selling the oil, mostly to China.

"No one knows how much of the oil money that the Guards get from selling Iran’s oil returns to the country ... they are too powerful to be questioned about it,” said a senior Iranian official, who asked not to be named.

During his 2013–2021 presidency, pragmatist Hassan Rouhani repeatedly clashed with the Guards, accusing them publicly of resisting budget cuts, while his attempts to curb their commercial networks and assets were largely frustrated.

THE ESTABLISHMENT RELIES ON THE GUARDS TO END UNREST

Even as it has relinquished economic power, the clerical establishment has relied on its loyal forces - the Guards and its affiliated Basij paramilitary - to violently crush ethnic uprisings, student unrest, and protests over economic hardship, preserving the political order.

"Given the sensitive circumstances when the country faces foreign threats, Khamenei cannot upset the Guards by curbing their economic influence. The establishment needs them to quell the protests and confront foreign threats," said an insider, close to Rouhani.

US-based rights group HRANA said it had verified the deaths of 544 people - 496 protesters and 48 security personnel - with 10,681 people arrested since ‌the protests began on December 28 and spread around the country. Reuters was unable to independently verify the tallies.

The authorities have not given numbers of casualties, but officials say many members of the security forces have been killed by "terrorists and rioters" linked to foreign foes, including the US States and Israel.


Greenland Says It Should Be Defended by NATO, Rejects Any US Takeover

 A view of houses in Nuuk, Greenland, June 22, 2025. (AP)
A view of houses in Nuuk, Greenland, June 22, 2025. (AP)
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Greenland Says It Should Be Defended by NATO, Rejects Any US Takeover

 A view of houses in Nuuk, Greenland, June 22, 2025. (AP)
A view of houses in Nuuk, Greenland, June 22, 2025. (AP)

Greenland's government said on Monday it will increase efforts to ensure the defense of the Arctic territory takes place under the auspices of NATO and again rejected US President Donald Trump's ambition to take over the island.

Trump has said the United States must own Greenland, an autonomous part of the Kingdom of Denmark, to prevent Russia ‌or China occupying the ‌strategically located and minerals-rich territory ‌in ⁠the future.

"All ‌NATO member states, including the United States, have a common interest in the defense of Greenland," the island's coalition government said in a statement, adding that it can in no way accept a US takeover of Greenland.

"As part of ⁠the Danish commonwealth, Greenland is a member of NATO and ‌the defense of Greenland ‍must therefore be through NATO," ‍the government said.

The European Union Commissioner ‍for Defense and Space Andrius Kubilius said earlier on Monday that any US military takeover of Greenland would be the end of NATO.

Trump first floated the idea of a US takeover of Greenland in 2019 during his first term ⁠in office, although he faces opposition in Washington, including from within his own party.

While Denmark has ruled Greenland for centuries, the territory has gradually been moving towards independence since 1979, a goal shared by all political parties elected to the island's parliament.

"We are a democratic society that makes our own decisions. And our actions are based on international law," Greenland's Prime Minister ‌Jens-Frederik Nielsen wrote on LinkedIn.