LMT Lockheed Martin Corp

By Chun Han Wong 

BEIJING -- China said it would sanction any U.S. firm involved in a planned $8 billion sale of advanced jet fighters to Taiwan, in retaliation against what it describes as Washington's attempt to undermine Chinese national security.

Beijing's countermeasure against the proposed sale of 66 F-16V fighters isn't expected to have much impact on the manufacturer, Lockheed Martin Corp., but it could complicate efforts to resolve the U.S.-China trade dispute.

"China will take all necessary measures to safeguard its interests, including the imposition of sanctions against the American companies that participate in this arms sale to Taiwan," Chinese Foreign Ministry spokesman Geng Shuang said Wednesday.

Beijing considers the self-ruled island of Taiwan as part of its territory and refuses to rule out achieving unification by force. China repeatedly has criticized U.S. arms sales to Taiwan as harmful to its sovereignty.

If Washington goes through with the F-16V sale, all of the ensuing consequences must be borne by the U.S., Mr. Geng said, without elaborating.

U.S. and Chinese officials have been discussing new rounds of talks, expected to be held next month in Washington, to resolve the countries' ongoing trade dispute. Some Trump administration officials have grown concerned in recent months that national-security disputes with China, including arms sales to Taiwan -- a separate $2.2 billion proposed sale of tanks, missiles and other military hardware was approved in July -- are souring efforts to secure a trade deal.

Congress was formally notified of the proposed F-16V sale on Tuesday after the State Department gave its approval. Several Republican and Democratic lawmakers, who were informally briefed on the proposal last week, have expressed support, calling it a vital move to deter Beijing from interfering with Taiwan's democracy.

When the proposed tank-and-missile deal was approved last month, China made a similar sanction threat against any U.S. company involved in the sale.

Sanctions are expected to have only a minimal effect on U.S. defense companies since they are broadly barred from making military sales to China, though Lockheed Martin has sold civilian helicopters to Chinese buyers through its Sikorsky Aircraft Corp. unit. A spokeswoman for Lockheed Martin referred queries to the State Department.

A State Department official said the department "will closely monitor any actions that would unfairly disadvantage U.S. firms and urge the Chinese government to refrain from imposing its political views on U.S. and foreign companies." The official said the U.S. policy regarding arms sales to Taiwan, which has remained consistent across administrations, has helped to maintain stability in the region.

From Beijing's perspective, Chinese experts say, the arms deal represents a statement of intent by Washington about maintaining influence in Asia, rather than an effort to tilt the military balance between China and Taiwan, which greatly favors the mainland.

"The U.S. wants to demonstrate its dominance over the Asia-Pacific region," said Shen Dingli, an international-relations professor in Shanghai. "It's an act of political provocation."

Under the 1979 Taiwan Relations Act, Washington is committed to selling defensive weaponry to Taipei, though the U.S. has in the past turned down Taiwanese requests for new F-16s and other advanced arms for fear of angering China. The law also commits the U.S. to treat threats to Taiwan as a matter of "grave concern," without specifying how Washington should respond to a Chinese attack on the island.

China has sought to bring Taiwan under its control since Mao Zedong's Communist forces drove Chiang Kai-shek's Nationalist government to retreat to the island seven decades ago. Chinese President Xi Jinping, who took power in late 2012, has pressed the unification issue with greater urgency than his recent predecessors.

Beijing has criticized Taiwan President Tsai Ing-wen for not affirming that the island and the mainland are part of "one China." Since Ms. Tsai's 2016 election, China has pressured her administration by poaching from Taipei's dwindling ranks of diplomatic partners, conducting military drills near Taiwan and curbing mainland Chinese tourism to the island, among other steps.

In a Wednesday tweet, Ms. Tsai thanked the Trump administration for pushing ahead with the F-16V sale. "We will continue to cooperate closely with the U.S. on security issues, contribute to peace & stability in the Taiwan Strait, and safeguard our freedom & democracy," she wrote.

These efforts have intensified in recent months as Beijing seeks to turn Taiwanese voters against Ms. Tsai -- whose ruling party has traditionally supported Taiwan's independence -- ahead of a presidential election in January.

Taiwan last purchased F-16s in 1992, when Washington agreed to sell 150 of the jet fighters to Taipei. That fleet, now numbering about 140 jets, remains the backbone of the island's air force, and is being upgraded to the F-16V standard by a local company. The new deal would enlarge the fleet to about 210 F-16s.

The F-16Vs, while inferior to top-tier American and Chinese stealth fighters, would be an upgrade for Taiwan's armed forces, which remain reliant on aging U.S. hardware. Even so, the new jets would only boost Taiwan's air force inventory to about 400 combat aircraft, compared with China's fleet of 1,700 combat aircraft -- an estimate provided by the U.S. Defense Intelligence Agency in a January report.

Courtney McBride in Washington contributed to this article.

Write to Chun Han Wong at chunhan.wong@wsj.com

(END) Dow Jones Newswires

August 21, 2019 16:57 ET (20:57 GMT)

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