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China entirely cuts off Lockheed Martin, Raytheon from domestic market

  • By Al Mayadeen English
  • Source: Agencies
  • 18 Apr 2023 22:29
  • 1 Shares
3 Min Read

Beijing expands the sanctions list on the US weapons manufacturers and prohibits local firms from doing business with the American companies directly or indirectly.

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  • China entirely cuts off Lockheed Martin, Raytheon from domestic market
    Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo, Japan, October 12, 2016. (Reuters)

Beijing extended sanctions on Lockheed Martin Corp (LMT.N) and Raytheon Missiles & Defense Corp (RTX.N) and prohibited domestic companies from doing business with the US military giants, the Chinese commerce ministry said on Tuesday.

China sanctioned the two companies in February 2022 for a $100 million arms sale to Taiwan.

Lockheed Martin and Raytheon Technologies were placed on an "unreliable enterprises list" over arms sales to Taiwan in February 2023.

Read more: Lockheed Martin halts deliveries due to 'Chinese alloy' used in engine

The laws introduced then forbid Lockheed Martin and Raytheon Missile and Defense Corporation, a subsidiary of Raytheon Technologies, from "participating in import and export activities connected to China."

On February 16, China imposed trade and investment sanctions on the two corporations over arms supplies to Taiwan, also banning their senior executives from entering, working, staying, and residing in the country.

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Read more: Raytheon director, wife die in Florida plane crash: Reports

"Lockheed Martin and Raytheon Missiles & Defense have long been selling weapons to Taiwan; it is of a foul nature. Therefore, we have made a decision to ban these two companies from having any exports or imports activities related to China in order to prevent Chinese products from being used in their military business," the ministry said in a statement.

Read more: US must change attitude toward China before any talks: Diplomat

Dealing with the sanctioned American companies, their proxies, or third parties, even unknowingly, will be considered a violation of sanctions, the ministry warned, stressing that Chinese companies must practice utmost measures to ensure who they are making trade with.

Beijing has repeatedly urged the US to stop selling armaments to Taiwan and cut its military ties with the island. However, the US expanded its weapons sales to the island in a clear provocation to Beijing's "one China" policy.

In response to repeated hostile measures by Taiwan and the US, the latest of which was a meeting between Taiwan's President Tsai Ing Wen and US House Speaker Kevin McCarthy on April 5 in California, Beijing launched last week a 3-day military exercise dubbed "United Sharp Sword" where Chinese jets and warships reportedly simulated strikes on Taiwan on the second day of the military drills.

Read more: China can rapidly dominate Taiwan airspace: US leaked docs

  • United States
  • Taiwan
  • Beijing
  • US
  • lockheed martin
  • China
  • Raytheon Missiles

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