China Imposes Sanctions Against US Defense Firms After Tensions Reach New Heights
By On Thursday, China imposed new sanctions against Lockheed Martin (LMT) and Raytheon Technologies Corp’s (RTX) Missiles and Defense subsidiary in retaliation for weapons sales to Taiwan.[0] Both companies were placed on China’s “unreliable entities list”, prohibiting them from importing and exporting activities related to China.[1] The announcement of sanctions on the US firms follows less than a week after the US blacklisted six Chinese entities in retaliation over an alleged Chinese spy balloon entering US airspace.[2]
The US State Department had already barred most sales of weapons-related technology to China, but some military contractors also have civilian businesses in aerospace and other markets.[2] The two companies are subject to fines “twice the amount” of their arms sales to Taiwan dating back to September 2020, and their senior executives will be prohibited from entering and working in China.[3] Moreover, work and residence permits for the companies' senior managers will be revoked, and they will be prohibited from entering the nation.[4]
The incident caused U.S. Secretary of State Antony Blinken to delay a diplomatic visit to China.[5] A fighter jet shot down a massive balloon that was believed to be a spy balloon as it drifted across the continental U.S. this month. This has caused a further increase in the already strained relations between Beijing and Washington. The balloon was downed off the coast of South Carolina.[0]
The question of whether the most recent sanctions will obstruct a gathering between US Secretary of State Antony Blinken and Mr Wang Yi, China's highest diplomat, on the edges of the Munich Security Conference this week is uncertain.[6] Secretary of State Antony Blinken is slated to meet with his counterpart Wang Yi this weekend, on the sidelines of the Munich Security Conference, as a gauge of their relationship.[7]
Tensions between the two biggest economies on the planet still remain concerning matters such as trade, but the economic danger is much greater when it comes to the conflict over access to modern, innovative technologies like the escalating semiconductor conflict.[7] China has threatened sanctions against US entities that damage its national security in the past, and the latest move is seen as another example of the country’s increasing assertiveness towards Washington.[8]
0. “China sanctions Lockheed Martin, Raytheon over weapons sales to Taiwan” Yahoo News, 16 Feb. 2023, https://news.yahoo.com/china-sanctions-lockheed-martin-raytheon-144944290.html
1. “China puts Lockheed, Raytheon on trade blacklist over arms deals with Taiwan – Washington Business Journal” Washington Business Journal , 16 Feb. 2023, https://www.bizjournals.com/washington/news/2023/02/16/lockheed-martin-raytheon-china-sanctions-taiwan.html
2. “China sanctions Lockheed Martin, Raytheon over Taiwan arms sales” Al Jazeera English, 16 Feb. 2023, https://www.aljazeera.com/news/2023/2/16/china-sanctions-lockheed-martin-raytheon-over-taiwan-arms
3. “China sanctions Lockheed, Raytheon after vowing to retaliate against US restrictions” KAKE, 16 Feb. 2023, https://www.kake.com/story/48394237/china-sanctions-lockheed-raytheon-after-vowing-to-retaliate-against-us-restrictions
4. “China hits back at US with sanctions on Lockheed Martin, Raytheon” The Straits Times, 16 Feb. 2023, https://www.straitstimes.com/asia/east-asia/china-hits-back-at-us-with-sanctions-on-lockheed-martin-raytheon
5. “China sanctions Lockheed Martin, Raytheon Missiles and Defense” UPI News, 16 Feb. 2023, https://www.upi.com/Top_News/World-News/2023/02/16/santions-raytheon-lockheed-martin-balloon/8101676569445/
6. “China hits back at U.S. with sanctions on Lockheed, Raytheon” The Spokesman Review, 16 Feb. 2023, https://www.spokesman.com/stories/2023/feb/16/china-hits-back-at-us-with-sanctions-on-lockheed-r
7. “China sanctions Lockheed, Raytheon over arms sales to Taiwan” Seeking Alpha, 16 Feb. 2023, https://seekingalpha.com/news/3937020-china-sanctions-lockheed-martin-raytheon-over-arms-sales-to-taiwan
8. “China sanctions Lockheed Martin and Raytheon over Taiwan sales” Axios, 16 Feb. 2023, https://www.axios.com/2023/02/16/china-sanction-lockheed-martin-raytheon-taiwan-sales
