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China Slaps Sanctions on 28 U.S. Defense Giants – What It Means for Military Trade

Daniel Kim Views  

China\'s Economy / Getty Images
China’s Economy / Getty Images

Beijing has imposed sanctions on twenty-eight U.S. defense companies. Chinese firms are prohibited from exporting dual-use items to these entities. Dual-use items can be utilized for both military and civilian purposes.

On Thursday, the Chinese Ministry of Commerce announced on its website that it has added twenty-eight American companies to its export control list. This list includes major defense contractors such as General Dynamics, L3 Harris, Boeing Defense, Space & Security (BDS), Lockheed Martin Corporation, Raytheon Missiles & Defense, and smaller firms like Intercoastal Electronics and Systems Studies & Simulation.

The Ministry stated, “Under the new rule, Chinese companies are prohibited from exporting dual-use items to these 28 U.S. entities. Any ongoing related export activities should be immediately halted.” They added that in exceptional cases where exports are deemed necessary, companies must submit an application to the Ministry for approval.

These sanctions took effect immediately. The Ministry did not specify which items fall under the restricted dual-use categories.

A Ministry spokesperson explained that these measures were implemented to safeguard China’s national security and interests and fulfill international obligations regarding non-proliferation.

In related news, China’s Unreliable Entity List issued its first announcement for 2025. It blacklists ten U.S. companies, including five Lockheed Martin Corporation subsidiaries, Raytheon, and General Dynamics. This action was taken in response to their involvement in arms sales to Taiwan.

These blacklisted companies face restrictions on exports and imports related to China, new investments within the country, and limitations on their senior executives’ ability to enter, work, or reside in China.

The Ministry spokesperson stressed that Taiwan is an internal issue for China and is central to its national interests. They asserted that China will not tolerate any external interference. Despite China’s vehement opposition, the spokesperson noted that in recent years, ten companies have engaged in arms exports to Taiwan, actions that they claim have severely undermined China’s national sovereignty and territorial integrity through what is referred to as “military technology cooperation.”

The spokesperson reassured other foreign businesses that China has consistently and prudently managed the Unreliable Entity List, targeting only a few foreign companies with security risks. He emphasized that law-abiding foreign firms should not be concerned and reiterated that the Chinese government continues to welcome investments from companies worldwide.

Daniel Kim
content@viewusglobal.com

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