China sanctions two U.S. defense firms

 

China imposed new fines and sanctions on two U.S. defense companies, Lockheed Martin and a subsidiary of Raytheon Technologies.   China’s Ministry of Commerce said both firms were added to a list of “unreliable entities” for selling weapons to Taiwan. The companies will be fined double the contract value of their arms sales to Taiwan since September 2020. The companies are required to pay the fines within 15 days, or the fine may increase. China considers Taiwan to be part of its territory and has raised concerns about the U.S. supplying the island with weapons. The sanctions prohibit the Chinese government from trading with both companies and ban the firms from making new investments in China. The sanctions also cancel and ban work and residence permits of the companies’ senior managers and prohibits them from entering the country. Lockheed Martin shares fell ~2% on Thursday, while Raytheon Technologies shares fell ~0.5%.