China has imposed sanctions on 10 individuals and 20 U.S. defense firms in response to the Trump administration's approval of a record $11.1 billion arms sales package to Taiwan. Beijing stated that the Taiwan issue is a "first red line" and warned of firm responses to provocations. The sanctions freeze assets and prohibit business dealings with targeted entities. China views Taiwan as its territory, a claim rejected by Taipei, while the U.S. is legally bound to help Taiwan defend itself.