The Chinese Commerce Ministry issued sanctions against the two largest US defense contractors, Lockheed Martin and Raytheon Technologies, on Thursday, February 16, over weapons supplies to Taiwan, Reuters reported.
According to the report, the order prohibits both the companies from engaging in any kind of import and export activities related to China or making any kind of investment in the country. According to the statement issued by the ministry, both the companies have been put on its “unreliable entities list.”
Both companies have been crucial parts of US arms supply deals with Taiwan. In September 2022, Raytheon Missiles and Defense, a part of Raytheon Technologies, was awarded a USD 412 million contract to upgrade Taiwan’s military radar system, Al-Jazeera reported.
Lockheed Martin has been involved in supplying radar systems, helicopters, and other defense equipment to Taiwan, despite Chinese objections.
The deal with Raytheon was part of a USD 1.1 billion arms sale package to Taiwan announced by the US in September last year.
Despite officially claiming its support for a “one China policy,” in December, in its national budget, the US allocated USD 2 billion per year for Taiwan’s security from 2023 to 2027.
China has seen such moves as deliberately provocative and as support for Taiwanese separatism.
On Saturday, February 4, the US also shot down what China claims was a meteorological balloon, claiming that it was a “spy balloon,” and saying that its presence over the US was an egregious violation of its airspace. It also issued orders to blacklist six Chinese entities last week, allegedly in response to the balloon.
Spokesperson of the Chinese Foreign Ministry Wang Wenbin said on Wednesday that the presence of the balloon over the US was an “entirely unintended, unexpected and isolated event caused by force majeure,” as reported by Xinhua. He also added that China would “take countermeasures in accordance with the law against relevant US entities that have undermined China’s sovereignty and security to safeguard China’s sovereignty and legitimate rights and interests.”
China’s top legislature, the National People’s Congress, also rejected the US Congress’ vote on the issue of the balloon, saying that such resolutions were “nothing but malicious hype and political manipulation.”
