China said on Friday (Sep 15) that it was sanctioning two United States defence companies, Lockheed Martin and Northrop Grumman, over their roles in supplying arms to Taiwan.

The United States Congress, under the Taiwan Relations Act, requires the supply of weapons to the self-governing democracy for its defence.

US administrations had done so through sales rather than direct aid, but in August, Washington for the first time approved direct US military aid to Taiwan under an assistance programme aimed at foreign governments.