China reveals details of sanctions against Lockheed Martin and Raytheon over arms supplies to Taiwan

In February 2023, China imposed trade sanctions on major US defence companies Lockheed Martin and Raytheon Technologies Corp. Raytheon Missiles & Defence. Two months later, Chinese authorities disclosed more information about the restrictions.

Here's What We Know

China has decided to impose sanctions on Lockheed Martin and Raytheon because both companies were supplying weapons to Taiwan. This week, China's Ministry of Commerce banned Chinese firms from cooperating with both Lockheed Martin and Raytheon.

US companies are also banned from selling their products in China. The ministry said in a statement that Chinese businesses should "strengthen their system of diligence and compliance to verify transactional information".

So far, it is difficult to say how much both US companies will be affected in the short term. However, the restrictions could hurt other Lockheed Martin and Raytheon divisions in the future. While exports of military products to China have already been restricted by US authorities, the sanctions could put aerospace business at risk.

The restrictions also prohibit senior executives of both companies from travelling to China or working in the Middle Kingdom. This includes Lockheed Martin Lockheed Martin chief executive James Donald Taiclet, chief operating officer Frank Andrew St. John and chief financial officer Jesus Malave. Raytheon president Wesley D. Kremer, vice presidents Agnes Soeder and Chander Nijhon were also blacklisted.

Source: Defence News