China Imposes Trade, Investment Sanctions on Lockheed Martin, Raytheon

China lodged trade and investment sanctions on a unit of Raytheon and Lockheed Martin for providing weaponry to Taiwan as it increases its attempts to isolate the island that it claims to be part of its territory, according to a report by AP on Thursday, Feb. 16.

"Unreliable Entities"

According to the Chinese Ministry of Commerce, Lockheed Martin and Raytheon Technologies Corp.'s Raytheon Missiles and Defense are not permitted to import products into China or make new investments in the country.

It claimed that they had been included in a list of businesses known as "unreliable entities" whose operations are limited because they could jeopardize security, development, or national sovereignty.

What effect the penalties might have was still unclear. Most sales of weaponry-related technologies to China are prohibited by the United States, but some military contractors also run civilian enterprises in the aerospace and other sectors, according to AP.

Following a civil war, Taiwan and China divided in 1949. The 22 million-person island has never been a part of the People's Republic of China, but the Communist Party claims that it must reunite with the mainland.

Although there are numerous business and unofficial interactions between the US and Taiwan, they have no formal diplomatic ties. Federal law requires Washington to guarantee that the island's government has the resources necessary to protect itself.

However, AP notes that the United States is Taiwan's primary supplier of military hardware.

Military Supply Deals

A $412 million deal to improve Taiwan's military radar was given to Raytheon Missiles and Defense, a division of Raytheon Technologies Corp., in September as part of a $1.1 billion package of US arms sales to the island.

For the procurement of Harpoon missiles, Boeing Defense was also awarded a $355 million deal.

Beijing announced sanctions against the CEOs of Raytheon and Boeing Defense in response to the deal, although it did not specify what those sanctions were.

The military of Taiwan has received radar, helicopters, and air traffic control equipment from Lockheed Martin. It contributes to the creation of the island's own fighter jets and other weaponry.

Lockheed Martin has offered commercially-useful helicopters and air traffic control hardware in China as well.

The country made the "unreliable entity" list public in 2019 in response to US sanctions against Chinese manufacturer Huawei.

In related news, China also said on Wednesday, Feb. 15, that it will take measures against US entities that are connected to the takedown of a suspected Chinese spy balloon after flying over American airspace.