China to Sanction Lockheed Martin Over Taiwan Arms Deal
July 14 2020 - 8:28AM
Dow Jones News
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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