China Sanctions Lockheed Martin and Raytheon Missile and Defense

February 16, 2023 by Leave a comment

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).

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China to Sanction U.S. Aerospace Manufacturers

October 30, 2020 by 1 Comment

The Chinese Government has said that China will sanction several US defense companies for selling arms to Taiwan. All three companies are active in the aerospace realm.

On Monday, Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian called on the U.S. to break ties with the government on Taipei, and he announced plans to sanction Lockheed Martin, Raytheon Technologies and Boeing Defense. He did not provide further details of the sanctions, and we’ve waited this week to learn of the details, but none have yet been released.

Zhao’s specificity in naming Boeing Defense could mean that Boeing Commercial Aircraft Group is not affected by the sanctions. This is mere supposition, though; the actual reach of the sanctions is not yet known.

Adam Ni, director of the China Policy Center in Canberra, Australia, suggested that he “suspect[s] the strategy will not be formal sanctions, but rather through administrative regulatory means.” This could include punitive tariffs or similar means that effectively prevent certain business with these sanctioned entities.

We will continue to watch, to learn how this might affect other U.S. aerospace companies.

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