China will sanction three American defense contractors, Lockheed Martin, Boeing Defense, Space & Security (BDS) and Raytheon, over the proposed arms sales to Taiwan, Chinese Foreign Ministry announced.
Zhao Lijian, spokesperson with the Chinese Foreign Ministry, told a regular press conference on Monday that the sanctions were in response to recently approved US arms sales to Taiwan with a total value of $1.81 billion.
He said that “China firmly opposes and strongly condemns” the U.S. arms sales to Taiwan which “severely violate the one-China principle and the three China-U.S. joint communiqués, and seriously undermine China’s sovereignty and security interests”.
He added that U.S. individuals and entities who played an “egregious role in the process” will also be sanctioned.
The potential arms sale to Taiwan, to be executed under the U.S. Foreign Military Sales (FMS) program, included 11 M142 HIMARS (High Mobility Artillery Rocket System) launchers along with 64 M57 ATACMS (Army Tactical Missile System) tactical ballistic missiles (TBMs) with a combined estimated worth of $436.1 million, 135 AGM-84H SLAM-ER (Standoff Land Attack Missile Expanded Response) stand-off air-launched cruise missiles (ALCMs) worth estimated $1.008 billion and six MS-110 reconnaissance pods worth estimated $367.2 million.
The prime contractor for HIMARS is Lockheed Martin Missile and Fire Control, for SLAM-ER it is Boeing and for the MS-110 pods it is Collins Aerospace, a division of Raytheon Technologies Corporation.
It is not known how the sanction will affect the companies. Lockheed Martin is primarily in the defense space and has limited presence in China. In the case of Boeing, even though China is a major market for its commercial aircraft division, the statement only named the company’s defense arm which also has limited presence in China. Raytheon and its group companies make subsystems for commercial aircraft and the extend to which the sanction will affect is not known.
Full Statement from Foreign Ministry Spokesperson Zhao Lijian
As China pointed out on multiple occasions, the U.S. arms sales to Taiwan severely violate the one-China principle and the three China-U.S. joint communiqués, and seriously undermine China’s sovereignty and security interests. China firmly opposes and strongly condemns it.
To uphold national interests, China decides to take necessary measures to sanction U.S. companies involved in the arms sales to Taiwan including Lockheed Martin, Boeing Defense, Space & Security (BDS) and Raytheon, as well as the U.S. individuals and entities who played an egregious role in the process.
Once again we urge the United States to strictly observe the one-China principle and the three China-U.S. joint communiqués, and stop selling weapons to Taiwan or having any military ties with it. We will continue taking necessary measures to safeguard national sovereignty and security interests.