China announces new sanctions against Lockheed Martin, Raytheon for Taiwan military sales
American defense contractors are supplying Taiwan’s military with helicopters, upgraded radar
China-US relationship a 'dangerous situation': Victoria Coates
Former Trump adviser Victoria Coates discusses China's warning of retaliation following the U.S. shootdown of their spy craft, Chinese diplomat Wang Yi's visit to Europe, and a potential meeting with Secretary of State Blinken.
China has announced fresh sanctions Thursday against Lockheed Martin Corp. and Raytheon Technologies Corp. over sales of military equipment to Taiwan, adding both of the defense contractors to its "unreliable entities list."
The move now prohibits Lockheed Martin Corp. and the Raytheon Missile and Defense Corporation – a subsidiary of Raytheon -- from "engaging in import and export activities related to China," Reuters reports, citing a statement from China’s commerce ministry.
It’s the fourth time China has sanctioned both companies since 2019, but in the previous three instances Beijing did not provide details on the nature of the measures or how they were enforced, according to Reuters.
The United States is Taiwan's main supplier of military equipment.
US CUTTING TIES WITH CHINA ‘EASIER SAID THAN DONE,’ EXPERTS WARN
F-16V jets, manufactured by Lockheed Martin Corp., fly over Taipei, Taiwan during the National Day celebration on Oct. 10, 2021. (I-Hwa Cheng/Bloomberg via Getty Images / Getty Images)
Raytheon Missiles and Defense was awarded a $412 million contract in September to upgrade Taiwanese military radar as part of a $1.1 billion package of U.S. arms sales to the island, according to The Associated Press.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORP. | 461.24 | -3.96 | -0.85% |
| RTX | RTX CORP. | 101.41 | -0.30 | -0.29% |
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.
DEFENSE COMPANIES SECURE RECORD ORDERS
Soldiers fire an anti-tank missile from a Javelin Weapon System developed by Lockheed Martin Corp. and Raytheon Technologies Corp. during a military exercise in Taichung, Taiwan, on July 16, 2020. (I-Hwa Cheng/Bloomberg via Getty Images / Getty Images)
In China, Lockheed Martin has sold air traffic control equipment for civilian airports and helicopters for commercial use.
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.
CLICK HERE TO READ MORE ON FOX BUSINESS
A sign for Lockheed Martin is seen Dec. 4, 2003 in Colorado Springs, Colorado. (Kevin Moloney/Getty Images / Getty Images)
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.
Beijing announced plans for the "unreliable entity" list in 2019 in response to U.S. restrictions imposed on Huawei Technologies Ltd., a Chinese maker of telecom equipment.
The Associated Press contributed to this report.