China Imposes Sanctions on Boeing and Two U.S. Defense Firms Over Taiwan Arms Sales
China Imposes Sanctions on Boeing and Two U.S. Defense Firms Over Taiwan Arms Sales

BEIJING: China's Ministry of Commerce has announced sanctions on Boeing and two other American defense companies in response to arms sales to Taiwan. This move coincided with Taiwan’s presidential inauguration.

This is part of a series of actions Beijing has taken in recent years against defense firms involved in selling weapons to Taiwan, which China claims as its own territory.

The Ministry placed Boeing’s Defense, Space & Security unit, General Atomics Aeronautical Systems, and General Dynamics Land Systems on its “unreliable entities” list. This listing bans these companies from further investments in China and imposes travel bans on their senior executives.

Taiwan’s new president, Lai Ching-te, has pledged to bolster the island’s security by acquiring advanced fighters and other military technology while also enhancing its domestic defense capabilities.

In April, China froze the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems within its borders. Corporate records indicate that General Dynamics operates several Gulfstream and jet aviation services in China, which still depends heavily on foreign aerospace technology despite its efforts to develop its own.

General Dynamics also manufactures the Abrams tank, which Taiwan is purchasing to replace outdated armor in a bid to deter or withstand a potential Chinese invasion. General Atomics is known for producing the Predator and Reaper drones used by the U.S. military, although it is unclear if they supply any weapons to Taiwan.

In 2022, China sanctioned Ted Colbert, the CEO of Boeing Defense, Space & Security, after the company secured a $355 million contract to supply Harpoon missiles to Taiwan.

Taiwan has been experiencing increasing military pressure from China’s People’s Liberation Army, which frequently conducts military flights and naval operations near the island.

The impact of Beijing’s sanctions on companies like Boeing remains uncertain. While the U.S. restricts most sales of weapons-related technology to China, some defense contractors also operate civilian aerospace businesses in other sectors.

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