Lockheed Martin, one of the largest defense groups in the world, has been blacklisted by China’s Ministry of Commerce. According to the ministry, Lockheed is an “unreliable company” because it supplies weapons to Taiwan.
Lockheed Martin is not the first company to be blacklisted from China. It happened first with a subsidiary of the American defense and aerospace group Raytheon Technologies.
Blacklist of consequences
Due to the blacklist, Chinese companies are no longer allowed to do business with Lockheed Martin and Raytheon’s Missile & Defense division. The two companies are also no longer allowed to make new investments in China. The companies are also fined twice the value of arms sales contracts in Taiwan. The work and residence permits for the CEOs of the two companies will also be revoked and they will no longer be able to enter China.
The consequences are mostly symbolic, says Chinese expert Fred Sengers, because America, for example, does not supply China with weapons at all. “But China’s export ban on those companies may still have a tailspin,” Sengers predicts. “It could just be that they use Chinese semi-finished products, for example, which they then have to get from somewhere else.”
Lockheed Martin and Raytheon Technologies are the two largest defense companies in the United States
Last September, the US State Department approved the sale of US military equipment to Taiwan. This happened after China stepped up its military activities around Taiwan.
Tensions between the US and China have escalated sharply in recent weeks. According to Sengers, the choice to blacklist Lockheed Martin is therefore logical. “This is, of course, a face-to-face reaction from China, after the Americans recently blacklisted six Chinese companies.”
Lockheed Martin and Raytheon Technologies are the two largest defense companies in the United States. Raytheon manufactures radar and other electronic systems for military applications in the air, at sea and on land.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
