China sanctions Lockheed Martin and Raytheon companies for arms sales to Taiwan

(Patria) - China has imposed trade and investment sanctions on Lockheed Martin and a Raytheon unit for supplying arms to Taiwan, AP reported.

Lockheed Martin Corp. and Raytheon Technologies Corp.'s Raytheon Missiles and Defense have been banned from importing goods into China, or making new investments in the country, the Ministry of Commerce announced. They have been added to the list of companies whose activities are restricted because they could endanger national sovereignty, security, or development interests.

The United States does not have official relations with Taiwan, but maintains extensive commercial and informal contacts. Washington is obligated under federal law to ensure that the government of Taiwan has the means to defend itself. The US is Taiwan's main supplier of military equipment.

Raytheon Missiles and Defense, part of Raytheon Technologies Corp., was awarded a $412 million contract in September to upgrade Taiwan's military radar as part of a $1.1 billion package for the sale of US arms to Taiwan. Boeing Defense received a $355 million contract to supply Harpoon missiles. Beijing responded to this sale by announcing sanctions against the CEOs of Raytheon and Boeing Defense, but did not provide details.

Lockheed Martin has supplied the Taiwanese military with radars, helicopters, and air traffic control equipment, and plays a role in the development of Taiwan's own fighter jets and naval frigates.

In China, Lockheed Martin has sold air traffic control equipment for civilian airports and helicopters for commercial use.