Gray Insight

The Ministry of Foreign Affairs of the People's Republic of China issued the "Decision on Countermeasures Against Relevant U.S. Military-Industrial Enterprises and Senior Executives" on December 26, 2025, which takes effect from the same date.

The United States recently announced a large-scale arms sale to the Taiwan region of China, which seriously violates the One-China Principle and the three China-U.S. Joint Communiqués, constitutes grave interference in China's internal affairs, and severely undermines China's sovereignty and territorial integrity. In accordance with Articles 3, 4, 5, 6, 9, and 15 of the "Anti-Foreign Sanctions Law of the People's Republic of China," China has decided to take countermeasures against the following U.S. military-industrial enterprises and senior executives:

Countermeasures

1. Against the 20 enterprises listed in the attached "Countermeasures List," including Northrop Grumman Systems Corporation, L3Harris Maritime Services, Boeing in St. Louis, Gibbs & Cox, Inc., Advanced Acoustic Concepts, VSE Corporation, Sierra Technical Services, Inc., Red Cat Holdings, Inc., Teal Drones, Inc., ReconCraft, High Point Aerotechnologies, Epirus, Inc., Dedrone Holdings Inc., Area-I, Blue Force Technologies, Dive Technologies, Vantor, Intelligent Epitaxy Technology, Inc., Rhombus Power Inc., and Lazarus Enterprises Inc., the following measures are taken: freezing movable property, immovable property, and all other types of property within the territory of China; prohibiting organizations and individuals within China from conducting transactions, cooperation, or other activities with them.

2. Against the 10 senior executives of enterprises listed in the attached "Countermeasures List," including Palmer Luckey (Founder of Anduril Industries), John Cantillon (Vice President of L3Harris Technologies, Vice President & Chief Accounting Officer of L3Harris Maritime Services), Michael J. Carnovale (President & CEO of Advanced Acoustic Concepts), John A. Cuomo (President & CEO of VSE Corporation), Mitch McDonald (President of Teal Drones, Inc.), Anshuman Roy (Founder & CEO of Rhombus Power Inc.), Dan Smoot (President & CEO of Vantor), Aaditya Devarakonda (CEO of Dedrone Holdings Inc.), Ann Wood (President of High Point Aerotechnologies), and Jay Hoflich (Co-founder & CEO of ReconCraft), the following measures are taken: freezing movable property, immovable property, and all other types of property within the territory of China; prohibiting organizations and individuals within China from conducting transactions, cooperation, or other activities with them; denying them visas and entry into China (including Hong Kong and Macao).