China to Sanction Lockheed Martin Over Taiwan Arms Deal

By Chun Han Wong

HONG KONG -- China said it plans to sanction Lockheed Martin Corp. over its role in a $620 million U.S. arms package for Taiwan, Beijing's latest retaliatory gesture amid mounting pressure from Washington.

Chinese Foreign Ministry spokesman Zhao Lijian announced the move on Tuesday as a response to the Trump administration's decision last week to approve an upgrade package for Taiwan's Patriot surface-to-air missiles.

"China firmly opposes U.S. arms sales to Taiwan," Mr. Zhao said at a routine news briefing Tuesday. "In order to safeguard national interests, China has decided to undertake necessary measures and impose sanctions on the main contractor for this sale, Lockheed Martin."

China considers Taiwan a part of its territory and has refused to rule out using force to gain control of the self-ruled island democracy. Beijing repeatedly has criticized U.S. arms sales to Taiwan as harmful to Chinese national sovereignty.

Mr. Zhao didn't give details about the sanctions. Lockheed Martin, the world's largest defense company by sales, and the State Department didn't immediately respond to requests for comment.

The sanctions aren't expected to have major impact since U.S. defense companies 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.

The announcement nevertheless continues a series of tit-for-tat measures that have marked a souring of bilateral ties between China and the U.S. over a long list of issues, including trade, technology, human rights and territorial claims in the South China Sea.

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

(END) Dow Jones Newswires

July 14, 2020 08:13 ET (12:13 GMT)

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