What Happened Once again, Taiwan is poised to throw a wrench into U.S.-Chinese ties. On July 12, Chinese Foreign Ministry spokesperson Geng Shuang said China would sanction any U.S. firms that sell arms to the self-governing island, just days after the White House approved the sale of $2.2 billion in tanks, missiles and related military equipment. The arms sales include 108 General Dynamics Corp. M1A2T Abrams tanks, which are produced and serviced at the Joint Systems Manufacturing Center in Ohio, as well as surface-to-air Stinger missiles that Raytheon Co. primarily manufactures in Tucson, Arizona. Why It Matters The prospective sanctions could target a number of private companies that have contracts to serve the U.S. defense sector. No U.S. defense companies have a physical presence in China, which is restricted from purchasing U.S. weapons.