China says it will impose sanctions on US company for Taiwan missiles contract
China said it is imposing sanctions on US aerospace and defence giant, Lockheed Martin, after the United States signed a $620 million agreement under which the company will upgrade the PAC-3 air defence missile system previously sold to Taiwan.
Chinese Foreign Ministry spokesman Zhao Lijian said at a press conference on Tuesday that the US should cut military ties with Taiwan.
‘China firmly opposes US arms sales to Taiwan,’ he warned. ‘China decides to take measures to protect national interests. We will impose sanctions on the main contractor of this arms sale, Lockheed Martin.’
China’s official Global Times newspaper quoted ‘aviation industry experts’ as saying that Beijing is likely to punish Lockheed Martin by cutting off supplies of rare earths and other materials crucial for building advanced weapons and imposing restrictions on the company’s suppliers that have business in China.