China Sanctions Lockheed, Raytheon Over Arms Sales to Taiwan

China added Lockheed Martin Corporation and a subsidiary of Raytheon Technologies Corp to its list of “unreliable entities” due to their participation in arms sales to Taiwan, the Ministry of Commerce said Thursday.

(Bloomberg) — China added Lockheed Martin Corporation and a subsidiary of Raytheon Technologies Corp to its list of “unreliable entities” due to their participation in arms sales to Taiwan, the Ministry of Commerce said Thursday.

The Chinese government will ban trade with Lockheed and Raytheon Missiles & Defense, as well as banning new investment from the two firms in China, the ministry said in a statement. It will also impose fines worth twice the value of the companies’ arms sales contracts with Taiwan, the statement added.

In addition, it will cancel and prohibit work and residence permits for the companies’ senior managers and ban them from entry into the country. 

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