China Targets US Defense Firms in New Sanctions for National Security

In a new intensification of trade disputes between the United States and China, Beijing declared on Thursday new export restrictions affecting 28 American firms and added 10 of them to a list, prohibiting them from operating in the country, according to media reports. The group of 28 companies primarily consists of defense contractors like Lockheed Martin and its five subsidiaries, General Dynamics and its three subsidiaries, three subsidiaries of Raytheon, one subsidiary of Boeing, and over a dozen other firms. Chinese companies are now prohibited from selling 'dual-use' goods, which can be used for both military and civilian purposes, to any of these entities.

Media reports indicate that the Chinese Ministry of Commerce stated the sanctions were enforced to safeguard national security and interests, as well as to fulfill international obligations such as non-proliferation.

In a different statement, the Chinese Ministry of Commerce labeled 10 companies, all subsidiaries of Lockheed Martin, General Dynamics, and Raytheon, as 'unreliable entities.' This label enforces tougher sanctions.

The sanctions entail prohibitions on the import and export of goods to and from China, limitations on new investments, and the cancellation of any work or residency permits held by the companies' executives. Additionally, executives are barred from traveling to China.

The ministry defended the actions, pointing to the firms' participation in arms sales to Taiwan. It stressed that the limitations aimed to 'protect national sovereignty, security, and development interests.' In December 2024, a bipartisan group of US legislators had introduced three bills to tackle China's role in the US fentanyl crisis.
According to the Voice of America, the suggested legislation encompassed the establishment of a US task force to tackle narcotics trafficking and included measures allowing sanctions on Chinese entities.

The new legislation aims to hold China's ruling Communist Party (CCP) responsible for 'directly contributing to the fentanyl crisis by subsidizing precursor chemicals,' according to the House of Representatives Select Committee on China, which includes all the bill's sponsors.

(Agency)