China imposes sanctions on US companies Lockheed Martin and Raytheon
16 February 2023, 11:04
The punishments were a retaliation for the companies supplying military equipment to Taiwan.
China imposed trade and investment sanctions on Lockheed Martin and a branch of Raytheon for supplying weapons to Taiwan, stepping up efforts to isolate the island democracy claimed by the ruling Communist Party as part of its territory.
Lockheed Martin and Raytheon Missiles and Defence are barred from importing goods into China or making new investments in the country, the ministry of commerce announced on Thursday.
It said they were added to the “unreliable entity” list of companies whose activities are restricted because they might endanger national sovereignty, security or development interests.
It was not clear what impact the penalties might have. The United States bars most sales of weapons-related technology to China, but some military contractors also have civilian businesses in aerospace and other markets.
Taiwan and China split in 1949 after a civil war. The island of 22 million people never has been part of the People’s Republic of China, but the Communist Party says it is obliged to unite with the mainland, by force if necessary.
President Xi Jinping’s government has stepped up efforts to intimidate Taiwan by flying fighter jets and bombers near the island and firing missiles into the sea.
The United States has no official relations with Taiwan but maintains extensive commercial and informal contacts. Washington is obligated by federal law to make sure the island’s government has the means to defend itself.
The United States is Taiwan’s main supplier of military equipment.
Raytheon Missiles and Defence, part of Raytheon Technologies, was awarded a 412 million US dollars (£340 million) contract in September to upgrade Taiwanese military radar as part of a 1.1 billion US dollars (£900 million) package of US arms sales to the island.
Boeing Defence received a 355 million US dollars (£294 million) contract to supply Harpoon missiles.
Beijing responded to that sale by announcing sanctions against the CEOs of Raytheon and of Boeing Defence but gave no details of what they were.
Lockheed Martin has supplied Taiwan’s military with radar, helicopters and air traffic control equipment. It plays a role in the island’s development of its own fighter jet and navy frigates.
In China, Lockheed Martin has sold air traffic control equipment for civilian airports and helicopters for commercial use.
Beijing announced plans for the “unreliable entity” list in 2019 in response to US restrictions imposed on Huawei Technologies, a Chinese maker of telecom equipment.
