The Ministry of Commerce in China has taken action against two United States defense companies, Lockheed Martin Corp and Raytheon Missiles & Defense, by adding them to its Unreliable Entity List. This decision came as a response to the companies’ involvement in arms sales to Taiwan island, which China sees as a threat to its national sovereignty, security, and development interests.
As a consequence of this action, the listed companies will be prohibited from engaging in import and export activities with China. Additionally, their senior management personnel will be banned from entering the country. This move is intended to send a strong message to the United States that China will not tolerate any interference in its internal affairs, especially when it comes to issues related to Taiwan.
Furthermore, Lockheed Martin and Raytheon Missiles will not be allowed to invest within China, and they will be fined an amount equivalent to twice the value of their contracts related to the sale of arms to Taiwan island since the implementation of China’s Unreliable Entity List rules. The companies have 15 days to pay the fine, and they may face additional penalties if they fail to comply with the decision after the deadline.
This decision has the potential to create significant tension between the two countries, which are already at odds over a range of issues, including trade, technology, and human rights. The United States has expressed its concern over China’s actions, stating that it undermines the principles of fair trade and could hurt American companies that do business with China.
The Unreliable Entity List was first introduced by China in May 2019, following the Trump administration’s decision to blacklist Chinese telecommunications company Huawei. The list is intended to target foreign companies and individuals that are deemed to pose a threat to China’s national security or interests. It is part of China’s broader strategy to strengthen its economic and technological capabilities, reduce its reliance on foreign companies, and assert itself as a global power.
This latest move by China demonstrates its willingness to take strong action against perceived threats, even if it means potentially damaging its relationship with the United States. It remains to be seen how the United States will respond to this latest development, but it is clear that tensions between the two countries are unlikely to ease any time soon.