China to sanction Boeing, Raytheon, Lockheed over Taiwan
CHINA will impose unspecified sanctions on Boeing's defence unit, Lockheed Martin Corp and Raytheon Technologies Corp after the US State Department approved US$1
CHINA will impose unspecified sanctions on Boeing's defence unit, Lockheed Martin Corp and Raytheon Technologies Corp after the US State Department approved US$1.8 billion in arms sales to Taiwan last week, reports Bloomberg News.
The deals are taking place during the rising tension between the superpowers ahead of the US election next week.
The new package includes 135 SLAM extended-range land attack missiles from Boeing, Himars mobile artillery rocket systems from Lockheed, and Raytheon surveillance and reconnaissance sensors to be mounted on aircraft.
Meanwhile, Boeing fell 3.7 per cent to US$161.11 as the more extensive market slumped due to Covid cases. Lockheed dropped 2.7 per cent to $364.24 and Raytheon declined 3.7 per cent to $60.23.
Boeing has had a 50 year relationship with China in aviation, which some feel has helped the country's aviation system to keep up with their economic growth.
'It's been a partnership with long-term benefits and one that Boeing remains committed to,' said Boeing.
Raytheon, which makes Pratt & Whitney aeronautics equipment, also praised its connections to China's civil aviation industry.
In August, US and Taiwan completed the sale of 66 new model F-16 Block 70 aircraft from Lockheed. However, Zhao, the Chinese foreign ministry spokesman, denounced it at the time, saying it violates the One China principle, interferes in China's internal affairs and will have a significant impact on US-China relations.
In July, China announced sanctions on Lockheed Martin for a previous arms sale to the island.
Taiwan will continue to push the US to fulfill its security pledge and sell weapons to the country for defense needs.
US arms manufacturers meet severe limitations on the kind of business they do with countries that are deemed by Washington as strategic rivals.
Lockheed generated 9.7 per cent of its revenue in the Asia-Pacific region last year.
China once threatened to sanction US companies on countless occasions over arms sales to Taiwan and warned it could blacklist FedEx Corp.
In fact, Ford Motor Co??s main joint venture partner in China was fined $24.3 million year after the US put a ban on doing business with Huawei Technologies.
Although China has threatened to put US companies on a blacklist, they haven't named any yet.
For Boeing, China's action comes at a sensitive time. The company is under a significant hit to air travel from the Covid pandemic and is trying to get is 737 Max plane back into the air after two fatal crashes caused it to ground around the world.
'There are a number of intangibles that could affect recertification of the Max in China and this could potentially add another dimension. China took the lead in grounding the Max and it is very conscious of its role in aviation safety. There's also the dimension of the trade tensions with the US. as well as the U.S. presidential election and how that turns out,' said director of JLS Consulting John Strickland.
Europe's top aviation regulator said the plane will be safe enough to fly again before the year ends, and US Federal Aviation Administration (F) chief Steve Dickson flew the plane in September.