China Sanctions Lockheed Martin and Raytheon Missile and Defense

China announced that it is adding Lockheed Martin Corporation and Raytheon Missile and Defense to its Unreliable Entity List. This means that Lockheed Martin Corporation and Raytheon Missile and Defense are forbidden from exporting to China (under Chinese law).

The official reason for these two companions being added to the Unreliable Entities List is because they have sold arms to Taiwan; but some in the media believe that the action may have been taken in retaliation for recent US sanctions related to a Chinese balloon that was shot down over the United States. The US added six Chinese aerospace companies to its own sanctions lists – these six Chinese companies are listed in the Federal Register.

China’s Unreliable Entity List is a sanctions list established and maintained by China’s Ministry of Commerce. The recent Chinese Unreliable Entity List Order prohibits Lockheed Martin Corporation and Raytheon Missile and Defense from engaging in import and export activities related to China. It is not yet clear whether this also inhibits the import into China of products made by each of these companies (but exported to China by third parties, like distributors).