China has sanctioned dozens of U.S. weapons makers, the latest escalation of the U.S.-China trade war before Donald Trump takes office. On Thursday, China announced it had added 28 U.S. companies to an export control list and blacklisted 10 other U.S. companies from doing business in China, citing weapons sales to Taiwan. Among the affected companies are General Dynamics, Lockheed Martin and Raytheon. On Tuesday, Chinese President Xi Jinping delivered his annual New Year’s address, saying China’s economy remains on course to expand by 5% this year, despite Trump’s threats of a renewed U.S.-China trade war.

President Xi Jinping: “The Chinese economy faces some new conditions, including challenges of uncertainties in the external environment and pressure of transformation from old growth drivers into new ones. But we can prevail with our hard work.”