China’s commerce ministry announced Thursday that it was imposing sanctions on two U.S. defense companies for selling arms to Taiwan, banning them from moving goods into China or making any new investments in the nation.
The action was taken a little more than a week after China promised “countermeasures” in response to the U.S military shoot-down of what's believed to have been a spy balloon that flew over the much of the U.S.
In a statement, China’s commerce ministry said Lockheed Martin Corp. and Raytheon Technologies Corp.’s Raytheon Missiles and Defense Division were prohibited from "engaging in import and export activities related to China" or making any new investments there.
Both defense companies are prohibited by U.S. law from selling weapons-related technology to China, but some U.S. military contractors conduct other non-weapons-related business in the country.
The statement said China also imposed fines on the companies totaling twice the value of their Taiwan contracts, and their executives are barred from working in China. It is unclear how China would enforce the fines.
The companies were also added to the “unreliable entity” list of companies whose activities are restricted because they might “endanger national sovereignty, security or development interests.” There was no mention in the statement of the balloon incident.
China has previously tried to impose sanctions on nations and businesses that sold arms to Taiwan, which China views as a breakaway province.
Taiwan and China split in 1949 after a civil war. The island of 22 million people never has been part of the People’s Republic of China, but the Communist Party says it is obliged to unite with the mainland, by force if necessary.
Some information for this report came from The Associated Press and Reuters.
