The Chinese government will sanction Lockheed Martin and the Missile and Defense subsidiary of Raytheon by adding them to the government’s “unreliable entities” list, the Ministry of Commerce said in a statement Thursday.
The Ministry of Commerce said the move was made “in order to safeguard national sovereignty, security and development interests, in accordance with the ‘Foreign Trade Law of the People’s Republic of China,’ ‘National Security Law of the People’s Republic of China,’ and other relevant laws.”
The Ministry said it “decided to include Lockheed Martin Corporation and Raytheon Missiles and Defense, involved in arms sales to Taiwan into the list of unreliable entities.”
According to the press release the companies “are prohibited from engaging in import and export activities related to China.”
The move comes amidst a diplomatic row caused by a Chinese surveillance balloon that overflew the United States before being shot down on Feb. 4 off the coast of South Carolina.
The incident caused U.S. Secretary of State State Antony Blinken to delay a diplomatic visit to China.
Last week, the U.S. Department of Commerce sanctioned five Chinese companies and one research institute, in response to the balloon incident.
The Chinese government maintains the position that the balloon was a civilian device.
The Chinese government has imposed sanctions on American aerospace, defense, security and advanced technologies company Lockheed Martin and defense contractor and industrial corporation Raytheon. “The involvement of US enterprises in the arms sale to Taiwan severely undermines China’s sovereignty and security interests. The Chinese government and enterprises will not conduct cooperation or business with such enterprises,” Chinese Foreign Ministry Spokesperson Hong Lei said December 17 in a press briefing.
“To safeguard our national interests, China has decided to take necessary measures, including imposing sanctions against the companies involved in the arms sale,” China’s Vice Foreign Minister Zheng Zeguang said Wednesday. He also summoned charge d’affaires of the US embassy in China Kaye Lee.
“No one can shake the firm will of the Chinese government and people to defend their national sovereignty and territorial integrity, and to oppose foreign interference,” the Chinese vice minister said.
According to US Defense Security Cooperation Agency (DSCA), the weapons sale to Taiwan will help improve the security of the recipient and assist in maintaining political stability, military balance, and economic progress in the region. It added that the sale serves US national, economic, and security interests by supporting the recipient’s continuing efforts to modernize its armed forces and enhance its defensive capability.
If no US Congressional objection is raised prior to expiration of the 30-day period the sale may go forward. Items included are missiles, CIWS guns, two Frigates, and Thirty-Six Assault Amphibious Vehicles.
