According to Reuters, China’s ministry of commerce on Monday announced sanctions against Boeing and two other defence companies for arms sales to Taiwan as Taiwan’s presidential inauguration is ongoing.
This move is just the most recent in a series of sanctions that Beijing has imposed in the past few years on defense firms that sell weapons to Taiwan, which is a self-governing island considered by China as part of its territory.
The Ministry listed Boeing Defense, Space & Security unit, General Atomics Aeronautical Systems (GA-ASI) and General Dynamics Land Systems (GDLS) onto what it calls an unreliable entities list. They are forbidden from investing further in China while travel bans have been placed on executives with these three American companies.
Taiwan President Lai Ching-te has vowed to boost his country’s safety by importing advanced fighter planes and other technology as well as strengthening the local defense industry.
In April, China froze assets of GA-ASI and GDLS within its jurisdiction.
General Dynamics also owns six Gulfstream and jet aviation service operations in China, according to corporate filings. As it tries to establish itself internationally, China depends heavily on foreign aerospace know-how.
It also helps produce the Abrams tank. The tanks that Taiwan purchased are meant to replace old armor that was intended for preventing or surviving an attack from China.
US media outlets report there is no information whether General Atomics sells weapons to Taiwan even though they make Predator drones used by US military forces.
For his part in securing a $355 million contract with the Taiwanese government for Harpoon missiles delivery, Ted Colbert who is President and CEO at Boeing Defence.Space.Security had sanctions imposed upon him by Beijing last year 2022.
China People Liberation Army has increased harassment against Taiwan recently. PLA regularly flies fighter jets or sails warships close to the island
It remains uncertain what impact these Beijing measures will have on enterprises like Boeing. For instance, under US law most technologies used in weapon systems cannot be sold to China. However, some military contractors also have civilian operations in aerospace among other industries.
