China has sanctioned 20 U.S. defense companies following the U.S. approval of a $330 million arms sale to Taiwan, including F-16 and C-130 parts. Beijing stated the sale violates the one-China principle and harms its sovereignty. Taiwan welcomed the deal, viewing it as crucial for self-defense against mainland pressure. The transaction escalates existing U.S.-China tensions over arms packages, with analysts predicting further strain on bilateral relations and regional divisions.