...Yeah? That is pretty much in line with how sanction works in the West.

US has sanctioned for decades companies that cooperate economically with "enemy states" (Iran/Cuba/Russia/China), I don't see how China would be different.

Indeed, and I'm not sure that China will arrest you when you're travelling in a foreign country, for trading with Taiwan.

https://en.wikipedia.org/wiki/Extradition_case_of_Meng_Wanzh...