Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China says to sanction Lockheed Martin over Taiwan arms sale

Published 07/14/2020, 04:33 AM
Updated 07/14/2020, 04:35 AM
© Reuters. Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo

© Reuters. Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo

BEIJING (Reuters) - China will put sanctions on Lockheed Martin (N:LMT) for involvement in the latest U.S. arms sale to Chinese-claimed Taiwan, China said on Tuesday, adding tension to its troubled relationship with the United States.

The U.S. weapons maker is the main contractor for a $620 million upgrade package for Taiwan's Patriot surface-to-air missiles, which the U.S. government approved last week.

Chinese foreign ministry spokesman Zhao Lijian called on the United States to stop selling weapons to Taiwan to "avoid further harming Sino-U.S. ties and peace and stability in the Taiwan Strait".

"In order to safeguard the country's interests, China has decided to take necessary steps, and put sanctions on the main contractor for this sale, Lockheed Martin," Zhao told reporters, without giving details.

The company did not immediately respond to a request for comment.

The United States, like most countries, has no official diplomatic ties with Taiwan, but is bound by law to provide the democratic island with the means to defend itself.

China has announced similar sanctions before on U.S. companies for Taiwan arms sales, though it is unclear what form they have taken.

The United States has long had an arms embargo on China.

The government in Taiwan has welcomed the missile upgrade. It is bolstering its defences for what it sees as increasingly threatening moves by Beijing, such as its regular air force and naval exercises near Taiwan.

Taiwan Defence Minister Yen Teh-fa, visiting troops during the annual Han Kuang military exercise, said they needed to be strong in the face of "all sorts of threats and provocations" from China.

"This tells our people and the Communists that we have the confidence and ability to protect our people and homeland, and defend the country's security," his ministry cited him as saying.

© Reuters. Lockheed Martin's logo is seen during Japan Aerospace 2016 air show in Tokyo

While Taiwan's military is well-trained and well-equipped with mostly U.S.-made hardware, China has huge numerical superiority and is adding advanced equipment of its own such as stealth fighters and new ballistic missiles.

Latest comments

The problem is that Taiwan doesn't belong to China. Taiwan is an independent nation. China can say it's not true 'til they're blue in the face, but it won't change reality. The fact is that China itself is composed of  "wayward" provinces belonging to the Taiwanese government. Hong Kong is tired of China. Taiwan is. The western provinces are. India is. Vietnam is. Truthfully, it seems pretty much everyone on the planet is tired of China.. hmm..
Don't forget about australia, which just passed a bill in the middle of all this, for $190B for defense upgrades that they are buying from the US because they asked for an investigation into the origins of the virus and China started beating it's chest. Australia is tied to the Chinese economy as bad as all the other countries you listed.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.