China hits back at US with sanctions on Lockheed Martin, Raytheon

Published

2 years ago

February 16, 2023

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BEIJING – China imposed fines and sanctions against two US defence companies in a further escalation of tensions between the worlds two biggest economies.

Lockheed Martin Corporation and a subsidiary of Raytheon Technologies Corp were added to a list of unreliable entities due to their participation in arms sales to Taiwan, Chinas Ministry of Commerce said Thursday.

The companies were fined twice the contract value of their arms sales to Taiwan since September 2020 when the list first came into effect and would be required to pay within 15 days, according to the statement.

China regards Taiwan as a renegade province to be reunified, by force if necessary. Beijing has long complained about the US supplying weapons to the island.

A day before the announcement, China had warned that it would hit the US with counter-measures over violations of its sovereignty, and on Thursday blamed the US for jeopardising ties by overreacting in the ongoing spat over a balloon.

However, the subsequent announcement of sanctions may further escalate that dispute.

Washington contended that the balloon was spying and shot it down, while China claims it was a civilian airship collecting weather data that went off course.

Its unclear if the latest sanctions will prevent a meeting between US Secretary of State Antony Blinken and Mr Wang Yi, Chinas top diplomat, on the sidelines of the Munich Security Conference this week.

Mr Blinken cancelled a planned trip to Beijing this month when the balloon controversy erupted.

Its a message to the US, but also for domestic consumption – to demonstrate Chinas tough position, said Dongshu Liu, an assistant professor specialising in Chinese politics at the City University of Hong Kong.

The economic consequences might not be as strong as the political ones – those companies dont do business in China. They may face some limitation as a result of these new sanctions, but still, its largely politically symbolic.

As with previous sanctions announced against the firms and other US defence companies, these measures are likely to be largely symbolic, given both have little direct exposure to China.

An e-mail to Raytheon outside of business hours went unanswered, as did calls to Lockheed Martin. More On This Topic China vows countermeasures over US blacklist of firms linked to suspected spying programme US upgrades Taiwan weapons package with newer patriot missiles The Chinese government will ban trade with both firms as well as blocking new investment from the two into China, the ministry said in a statement. If they dont pay the fines within 15 days the ministry may increase the fines, the statement said.

In addition, it will cancel and prohibit work and residence permits for the companies senior managers and ban them from entry into the country.

This action shows that Chinas retaliation remains very targeted and refrained, responding to US arms sales towards Taiwan, over which China has lodged its protest many times in the past, said Mr Feng Chucheng, a Beijing-based partner at independent consultancy Plenum.

China is not weaponising its sanctions, which is consistent with Chinas longstanding policies.

China has threatened sanctions against US entities that damage its national security in the past.

In 2020 it said it would impose unspecified sanctions on Boeing Co.s defence unit, Lockheed Martin, and Raytheon after the US State Department approved arms sales to Taiwan.

Last September, Beijing said it was sanctioning two top executives at Boeing and Raytheon over the biggest US weapons deal with Taiwan in almost two years, but didnt provide details on the measures.

Naming two already sanctioned companies onto the list for the first time actually proves that Mofcom wants to take it slow and experiment with how to implement the new unreliable entity list, according to Mr Andy Chen, a senior analyst with Beijing-based consultancy Trivium China.

The list was created in haste as a response to USs long-arm jurisdiction but Mofcom wasnt ready to deploy it at the time because it lacked the experience – and probably personnel – to carry it out.BLOOMBERG More On This Topic China plans sanctions on CEOs of Boeing Defence, Raytheon over Taiwan arms sale Beijing places sanctions on US arms companies Lockheed and Raytheon

Politics

Chancellor insists Labour rebels ‘know the welfare system needs reform’ as they push for change

Published

1 hour ago

May 9, 2025

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Chancellor insists Labour rebels 'know the welfare system needs reform' as they push for change

Chancellor Rachel Reeves has insisted that rebelling Labour MPs “know the welfare system needs reform” as the government faces a growing backlash over planned cuts.

Sir Keir Starmer is under pressure from Labour MPs, with about 40 in the Red Wall – the party’s traditional heartlands in the north of England – warning the prime minister’s welfare plan is “impossible to support” in its current form.

Dozens have thrown their support behind a letter urging the government to “delay” the proposals, which they blasted as “the biggest attack on the welfare state” since Tory austerity.

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Ms Reeves on Friday reiterated her plans for reform, insisting that no-one, including Labour MPs and party members, “thinks that the current welfare system created by the Conservative Party is working today”.

She said: “They know that the system needs reform. We do need to reform how the welfare system works if we’re going to grow our economy.”

But, the chancellor added, if the government is going to lift people out of poverty “the focus has got to be on supporting people into work”.

“Of course if you can’t work, the welfare state must always be there for you, and with this government it will be,” she said.

The reforms, announced ahead of Ms Reeves’s spring statement in March, include cuts to Personal Independence Payments (PIP), one of the main types of disability benefit, and a hike in the universal credit standard allowance.

The government has claimed that changes to welfare will cut the budget by £4.8bn overall.

Separately, Downing Street refused on Friday to deny that Ms Reeves has consulted on potentially overhauling their winter fuel payment policy.

Labour’s unpopular decision to means-test the policy has taken the benefit away from millions of pensioners.

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Ministers have faced pressure from their own backbenchers to rethink the policy in the wake of last week’s local election results, which saw Labour lose the Runcorn by-election and control of Doncaster Council to Reform UK.

Asked if the chancellor has discussed the winter fuel payment in private, the prime minister’s spokesperson said they would not give a running commentary.

Pushed again, Number 10 said a “range” of discussions take place in government – which is not a denial.

However, it is worth noting that when reports emerged earlier this week that Downing Street was reviewing the policy, the government strongly pushed back on that suggestion.

World

Ten explosions near international airport in India-administered part of Kashmir, officials say

Published

1 hour ago

May 9, 2025

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Ten explosions have been heard near Srinagar International Airport in India-administered parts of Kashmir, officials have told Reuters news agency.

The blasts followed blackouts caused by multiple projectiles, which were seen in the sky above the city of Jammu earlier on Friday.

Explosions were also heard in the Sikh holy city of Amritsar, in the neighbouring Punjab state, according to Reuters.

An Indian military official told the agency that “drones have been sighted” and “they are being engaged”.

It comes as tensions between India and Pakistan across the line of control around the region of Kashmir have boiled over this week, leading to fears of a wider conflict.

On Wednesday morning, India carried out missile strikes in Pakistan and Pakistan-administered parts of the disputed region.

The retaliation came weeks after 26 people, mainly Indian tourists, were shot dead by gunmen in an India-administered part of Kashmir last month.

The government in India said it hit nine “terrorist infrastructure” sites, while Pakistan said it was not involved in the April attack and the sites were not militant bases.

Around 48 people have been killed since Wednesday, according to casualty estimates on both sides – which have not been independently verified.

India also suspended its top cricket tournament, the Indian Premier League, as a result of rising tensions, while the Pakistan Super League moved the remainder of its season to the United Arab Emirates.

Meanwhile, White House press secretary Karoline Leavitt said at a conference on Friday that the US is in constant contact with both India and Pakistan.

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World

Russia’s Victory Day parade felt more like a celebration of war than peace

Published

1 hour ago

May 9, 2025

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Russia's Victory Day parade felt more like a celebration of war than peace

Standing on Red Square, this was an intimidating sight, which felt much more like a celebration of war rather than peace.

I could feel the ground shake as the tanks rolled past, their caterpillar tracks on the ancient cobbles providing a deafening clatter.

The hairs on the back of my neck stood up in fear as the phalanxes of troops roared “Hurrah” in response to their commander in chief.

And the sight of combat drones being paraded on their launchers was actually quite sickening. Weapons that have been at the forefront of Russia’s invasion of Ukraine were paraded in a show of pomp and patriotism.

Ukraine war latest: Putin welcomes Xi at Victory Day parade

For the rest of Europe, the 80th anniversary of the end of the Second World War has been a celebration of peace, but this felt much more like a celebration of war.

And it wasn’t just military hardware on display here, but the very identity of modern Russia.

For this is a country that is now defined by its military and its memory. The glory and sacrifice of 1945 have been weaponised to give credence to Russia’s current course and to make people believe that victory is their right.

For Russians, it served as a rallying cry and there was applause when the troops who have fought against Ukraine marched past.

But for those watching in Kyiv and other European capitals, it was an overt warning that Moscow has no intention of backing down.

The parade was considerably larger in scale than in recent years, when units and hardware have been needed on the battlefield. I think it was a deliberate attempt to project an image of confidence, and so was Vladimir Putin‘s positioning of his guests.

China’s Xi Jinping was given a prime position on the Kremlin leader’s right-hand side. It was no surprise given the economic lifeline Beijing has provided, but it felt like a particularly pointed gesture to the West – that they were looking at a new world order.

Despite that appearance of confidence, there were signs of Moscow’s unease that the parade could be disrupted.

There were snipers on every rooftop. Security was extremely tight. And the mobile internet signal across the city centre was completely shut down for fear of Ukrainian drone attacks, meaning none of the international media that had gathered could broadcast any live transmissions.

After the parade finished, Putin saluted the crowds as they spontaneously erupted into rhythmic shouts of “Rus-si-ya” at the sight of him.

Another PR coup complete without interruption, he will have departed as a very happy man.