China Blacklists US Defense Contractors

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China touted its own sanctions blacklist, placing Lockheed Martin and Raytheon Missiles & Defence to China’s “Unreliable Entity List” over their participation in arms sales to Taiwan.

“Unreliable Entities” are
• prohibited from engaging in import and export activities related to China;
• prohibited from making new investments in China; and
• subject to fines of twice the contract value of their arms sales to Taiwan since September 2020, when the list was established. Further fines will be imposed if payment is not made within 15 days.

The use of the measure “is strictly limited and aimed at very few foreign entities breaking the law,” according to the Ministry of Commerce. In February 2022, Lockheed and Raytheon were targeted by China over a missile defense system the two firms agreed to provide to Taiwan. Raytheon units Pratt & Whitney and Collins Aerospace remain unaffected by the move.

Missing from the announcement was Boeing, Taipei’s supplier of Harpoon anti-ship missiles. Last September, China levied sanctions against Boeing Defense, Space & Security chief executive Ted Colbert and Raytheon chief executive Gregory Hayes in retaliation for those missile sales.