China sanctions Lockheed Martin and Raytheon - banning them from trading and investing in China

The authorities of the People's Republic of China have announced sanctions against two major US defence companies. We are talking about Lockheed Martin and Raytheon Missiles & Defense.

Here's What We Know

The sanctions against the two manufacturers were officially announced by the Ministry of Commerce of the People's Republic of China. The ministry added Lockheed Martin and Raytheon Missiles & Defense to the list of disadvantaged companies.

The Chinese authorities explain their decision by the protection of national sovereignty and security. The reason for the sanctions is that Lockheed Martin and Raytheon Missiles & Defense are involved in arms supplies to Taiwan.

Executives of US companies will no longer be able to work and reside in China. Existing permits will be revoked. In addition, Lockheed Martin and Raytheon Missiles & Defense are banned from importing and exporting as well as investing in China.

US authorities have already banned local companies from supplying arms-related products to China. Therefore, it is difficult to say what impact the Chinese sanctions will have on Lockheed Martin and Raytheon Missiles & Defense.

Source: AP