China said on Monday (May 20) it would sanction three US defence companies over their sales of arms to Taiwan, as the self-ruled island inaugurated a new president.

The Chinese Ministry of Commerce announced that it will add three US companies—General Atomics Aeronautical Systems, General Dynamics Land Systems, and Boeing Defense, Space & Security—to its list of “unreliable entities.”

“They will be barred from engaging in China-related import or export activities, and are forbidden to make new investments in China,” the state-run Xinhua news agency said.

“The move also bars top executives from setting foot in China, revoking their work permits and any existing visas,” it further stated.

China’s announcement came as Lai Ching-te was sworn in on Monday as president of the democratic island.

It is worth mentioning here, China claims Taiwan as part of its territory and has branded 64-year-old Lai a dangerous separatist who will bring war and decline to the island.

Despite switching diplomatic recognition to Beijing in 1979, the United States remains Taiwan’s strongest international partner and primary source of military equipment. 

Last month, the US approved a significant military aid package for Taiwan, including $1.9 billion to bolster its defenses.

However, another $2 billion will be used for foreign military financing for countries in the region.

Beijing fumed over the package, warned it would increase the risk of conflict along the strait.

US Secretary of State Antony Blinken congratulated Taiwan’s newly inaugurated President Lai Ching-te, saying he looked forward to Washington and Taipei deepening ties and maintaining “peace and stability across the Taiwan Strait.”

“We also congratulate the Taiwan people for once again demonstrating the strength of their robust and resilient democratic system,” Blinken said in a statement.

(With inputs from agencies)