China Sanctions US Defense Companies for Military Sales to Taiwan
China said it will sanction three U.S. aerospace and defense companies for their arms sales to Taiwan, saying the exports “seriously undermine” China’s national security. The sanctions will target Lockheed Martin, Boeing and Raytheon for their involvement in $1.8 billion worth of arms sales to Taiwan, which was announced by the State Department Oct. 21 (see 2010220020). A China Foreign Ministry spokesperson said Oct. 26 the country will also sanction “U.S. individuals and entities who played an egregious role in the process.” China did not say what the sanctions will entail.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
“Once again we urge the United States to … stop selling weapons to Taiwan or having any military ties with it,” the spokesperson said. “We will continue taking necessary measures to safeguard national sovereignty and security interests.”
A State Department spokesperson said “we deplore Beijing's efforts to retaliate against U.S. and foreign companies” and called the sanctions “entirely unacceptable.” The State Department has “consistently conveyed to the Chinese government that the United States strongly objects to China's attempts to coerce private firms,” the spokesperson said Oct. 26. “Our view has not changed.”
A Lockheed Martin spokesperson said the contractor works closely with the U.S. on military sales to foreign customers. “Lockheed Martin adheres to United States government policy with regard to conducting business with foreign governments,” the spokesperson said in an Oct. 26 statement. “All of our international sales are strictly regulated by the U.S. government.” A Boeing spokesperson said the company has worked with the “aviation community” in China “for almost 50 years,” adding that “it’s been a partnership with long-term benefits and one that Boeing remains committed to.” Raytheon did not comment.