China to sanction Boeing, Raytheon, Lockheed over Taiwan arms

Topics China | Raytheon | Boeing

The new arms sale, and an earlier one involving Lockheed F-16 fighters, have taken place amid rising tension between the superpowers ahead of the US election next week
China will impose unspecified sanctions on Boeing’s defense unit, Lockheed Martin and Raytheon Technologies after the US State Department approved $1.8 billion in arms sales to Taiwan last week.

 
The sanctions will be imposed “in order to uphold national interests,” Chinese Foreign Ministry spokesman Zhao Lijian told reporters Monday in Beijing. Boeing Defense would be among those sanctioned, he said.

 
The action follows the State Department’s approval last week of $1.8 billion in new weapons for Taiwan and submission of the package to Congress for a final review. The new arms sale, and an earlier one involving Lockheed F-16 fighters, have taken place amid rising tension between the superpowers ahead of the US election next week.

 
The new package includes 135 SLAM-extended-range land attack missiles from Boeing, Himars mobile artillery rocket systems from Lockheed, and Raytheon surveillance and reconnaissance sensors to be mounted on aircraft.

 
Shares of Boeing, down almost 50 per cent this year, slipped 1.5% from Friday’s closing price to $164.85 in pre-market New York trading on Monday. Boeing Defense is one of the Chicago-based aerospace manufacturer’s three business units, according to its website. It also makes aircraft such as the 787 Dreamliner and 737 Max that are sold to Chinese airlines.

 
Boeing emphasized the firm’s 50-year relationship with China in aviation, citing the company’s role in helping the country’s “safe, efficient and profitable aviation system to keep pace with the country’s rapid economic growth” in an emailed statement. “It’s been a partnership with long-term benefits and one that Boeing remains committed to.”

 
Lockheed Martin said foreign military sales are government-to-government transactions. It works closely with US authorities and its presence in China is limited, it said in an email.


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