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China to Sanction US Companies Over Sales to Taiwan

Lockheed Martin and Raytheon Face Unspecified Penalties

Following the most recent US State Department approval of military sales to Taiwan, China’s Ministry of Foreign Affairs (MoFA) announced on 21 February that it is imposing sanctions on US companies Lockheed Martin and Raytheon Technologies, using a law enacted in June 2021.

Speaking to reporters in Beijing, MoFA spokesperson Wang Wenbin said Beijing has decided to “take countermeasures in accordance with relevant stipulations in China’s ‘Anti-Foreign Sanctions Law’ on the infringing acts of Raytheon Technologies Corporation and Lockheed Martin Corporation, both of which are military industrial enterprises that have long participated in the US’ arms sales to China’s Taiwan region”.

The spokesperson noted that the measures are being taken to “safeguard China’s sovereignty and security interests” as US arms sales to Taiwan “seriously violate” the One-China Principle, “undermine China’s sovereignty and security interests, and severely harm China-US relations as well as peace and stability across the Taiwan Strait”.

No details were provided on how these sanctions will be enforced, and China’s new Anti-Foreign Sanctions Law is relatively vague in terms of penalties. It is also unlikely that these measures will affect the companies’ core business, as the United States has maintained an arms sales embargo on China for several decades.

China had often threatened to sanction these companies whenever arms sales to Taiwan were involved, but this seems to be the first time Beijing will do so under the recently enacted law.

The latest developments come after the US Defense Security Cooperation Agency announced on 7 February US State Department approval of a potential $100 million Foreign Military Sale (FMS) to Taiwan of equipment and services to support enhancements of the island’s Patriot air defence systems, as well as participation in the Patriot International Engineering Services Program (IESP) and Field Surveillance Program (FSP) for five years.

Beijing, which regards Taiwan as a break-away province, has repeatedly condemned US weapon sales to the island.

Gabriel Dominguez in Singapore for MON

 

 

Test launch of a PAC-3 MSE air defence missile in the US. (Lockheed Martin)

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Publish date

02/22/2022

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