Beijing has offered new details on sanctions imposed against Lockheed Martin and Raytheon Missiles & Defense.
In a Tuesday statement, China’s Ministry of Commerce confirmed that a ban has been in place since February on company executives visiting, working in or residing in the country, and that import/export restrictions have been set up to “prevent Chinese products from being used in their military business.”
Tuesday’s comments come amid the continued of escalation of tensions between Beijing and Washington over Taiwan, with tensions spilling into trade ties between the two countries and between China and the West in general.
China has been conducting what British financial media has characterized as “surgical” retaliation against foreign firms in response to US-led technology restrictions. Some measures include a probe into US chip maker Micron Technology for illegal activity, the closure of the Beijing offices of US corporate due diligence firm Mintz Group, a $31 million fine against auditing firm Deloitte over suspected auditing negligence, and the detention of an executive of a major Japanese pharmaceuticals company on suspicion of espionage.
Earlier this month, Asian business media reported that China is considering slapping restrictions on the export of rare-earth magnet technology to the US on “national security” grounds.
The United States has spent over four decades flouting a 1982 joint communique with China which obliges Washington to gradually bring arms sales to Taiwan to zero. Washington has recently ramped up its informal diplomatic ties with Taipei in violation of commitments made to China when diplomatic relations were restored in 1979.
Recent administrations have signed off on the sale of tens of billions of dollars in advanced military hardware to Taiwan. However, this trade has witnessed the buildup of a $19+ billion backlog, with Covid and the Ukraine crisis blamed for delays.
Representatives from more than two dozen major US defense contractors plan to travel to Taiwan next month to discuss the joint production of drones and ammunition. These plans come following Pentagon chief Lloyd Austin’s announcement in late March that the US military would use a $1 billion authorization to speed up the transfer of weapons to the island.
Chinese officials have repeatedly announced their aspiration to ensure a peaceful reunification of Taiwan with the mainland under the so-called ‘One Country, Two Systems’ model – which will allow the island to preserve elements of its existing political, legal and economic systems while remaining in China’s jurisdiction. Beijing has warned, however, that any attempts by foreign-backed separatists to declare independence could trigger a military solution to the issue.