In what is being deemed a largely political stunt, Chinese trade authorities have listed Lockheed Martin Corp. and a subsidiary of Raytheon Technologies Corp. under the “unreliable entities” list—the Chinese equivalent of America’s sanctioned entities list.
The judgment was made based on Lockheed Martin and Raytheon’s close partnership with the US government in the continually-enlarging arms sales to Taiwan.
A fine was issued amounting to twice the value of all the arms sales contracts awarded to the US weapons giants related to Taiwan since 2020. The fines are expected to be paid in 15 days, or further sanctioning will take place.
The sanctions were announced on Wednesday by Chinese Foreign Minister Wang Wenbin, in response to the shooting down of the suspected spy balloon, and the sanctioning of 6 Chinese tech firms related to a theorized global spy balloon operation run by Beijing.
Following the shooting down of the balloon, Chinese officials stated they reserved the right to inflict appropriate counter measures.
Regarding Taiwan, the vast majority of nations recognize that Taiwan is a renegade province of China, who in turn believes the two must be reunited. Following US President Biden’s significant escalations in the arming of Taiwan, Beijing determined in a recent white paper that reunification must be the nation’s top priority and that force should not be ruled out.
The sanctions are likely not to affect the companies so strongly—they are forbidden by the US government from doing business in China. However, it succinctly illustrates the absurdity of all unilateral economic force imposed around the world.