China Hits Boeing Defense, 2 Others With Symbolic Sanctions

A Boeing CH-47SD Chinook helicopter (left) flies Taiwan’s flag past a control tower at a military base in Taoyuan on May 7, during a rehearsal ahead of the May 20 inauguration ceremony for Taiwan’s President-elect Lai Ching-te. (Sam Yeh/AFP/Getty Images/TNS)

(Bloomberg News/TNS) — China sanctioned three U.S. defense contractors in a mostly symbolic move that signals its unhappiness with U.S. arms sales to Taiwan the same day the island installs a new leader.

Boeing Defense, Space & Security, General Atomics Aeronautical Systems Inc. and General Dynamics Land Systems Inc. were added to an “unreliable entity” list for providing weapons to Taiwan, according to statements on Monday from the Commerce Ministry in Beijing.

The list aims to punish firms, organizations or individuals that damage national security. Penalties can include restricting trade, investment and visas.

The move comes just as Taiwan swore in a new president, Lai Ching-te. He has pledged to continue fostering close ties with the U.S., including militarily, much like his predecessor, Tsai Ing-wen. China has vowed to bring Taiwan under its control eventually, by force if necessary. 

The three companies join Lockheed Martin Corp. and a subsidiary of Raytheon Technologies Corp., who were added to the list in early 2023.

The move is likely to have little or no effect on the companies because U.S. defense companies don’t tend to do business in China.

The CEO of the Boeing subsidiary, Ted Colbert, was hit by sanctions from China in 2022.

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