China penalises Lockheed Martin and Raytheon for selling to Taiwan

BEIJING — In a move to further isolate the island democracy that the Communist Party in power claims as part of its territory, China on Thursday placed trade and investment penalties on American defence contractors Lockheed Martin and Raytheon.

According to the announcement from the Ministry of Commerce, the enterprises are not permitted to import products into China or make new investments there.

What consequences the fines might have for Raytheon or Lockheed Martin were unclear. Most sales of weaponry-related technologies to China are prohibited by the United States, but some military contractors also run civilian enterprises in the aerospace and other sectors.

By operating fighter jets and bombers close to the island, President Xi Jinping stepped up his intimidation campaign against Taiwan.

On August 4, 2022, Chinese military helicopters fly over Pingtan island, one of mainland China’s closest points to Taiwan.

Following a civil war, Taiwan and China divided in 1949. The Communist Party claims that while though the island has never been a part of the People’s Republic of China, it must nonetheless reunite with the mainland, even if it means using force.

The government of President Xi Jinping has intensified its intimidation campaign against Taiwan by flying fighter jets and bombers close to the island and firing missiles into the water.