Thursday, China placed trade and investment sanctions on Lockheed Martin and a Raytheon subsidiary, citing the companies' arms sales to Taiwan.
Lockheed Martin and Raytheon Missiles and Defense, divisions of Raytheon Technologies Corp., were added to the "unreliable entry" list of firms whose activities are limited because they pose a threat to national sovereignty, security, or development interests.
China's Ministry of Commerce declared that U.S. arms manufacturers are prohibited from importing goods or establishing new investments in the country.
The move looked to be either a follow-through on China's February 2022 announcement of sanctions against the companies or an extension of those restrictions.
In October 2020, China also imposed sanctions against Raytheon, other defense contractors, and "relevant American individuals."
It was initially unclear what impact the sanctions could have on Lockheed Martin and Raytheon. The United States has already prohibited the vast majority of sales of weapons-related technology to China, but certain military contractors also operate in the aerospace and other areas.
The United States is Taiwan's primary source of military equipment.
In September, Raytheon Missiles and Defense, a division of Raytheon Technologies Corp, was granted a $412 million contract to improve Taiwan's military radar as part of a $1.1 billion U.S. arms sale to the island. Lockheed Martin has provided radar, helicopters, and air traffic control systems to Taiwan's military.
Lockheed Martin has sold air traffic control equipment for civil airports and commercial helicopters in China.
Beijing has up its efforts to isolating the island democracy it claims as Its property.
In recent years, China's bilateral relations with the United States have also been strained due to the shooting down of multiple balloons that the United States claims were conducting espionage activities.
The U.S. Bureau of Industry and Security announced on Friday that six Chinese businesses were being targeted because of their ties to Beijing's aerospace programs, which involved the construction of observation balloons, and their "support for China's military modernization efforts."
The foreign affairs committee of China's National People's Congress responded negatively to a U.S. Congress resolution on the balloons on Thursday, stating that the resolution "deliberately exaggerated the 'China threat.'"
It said that the document was nothing but "purely malicious hype and political manipulation," It also said that some politicians in the U.S. Congress "fanned the flames, fully exposing their sinister designs to oppose China and contain China."
Meanwhile, Taiwan's military reported on Thursday that it had uncovered the remains of a Chinese-made weather balloon on a remote and strategically important island near the Chinese shore. Tuesday, Taiwan's Defense Ministry stated that no Chinese surveillance balloons had been observed in its vicinity.
