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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

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Angela Rayner came out fighting in our interview – but her future is now out of her control

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Angela Rayner came out fighting in our interview - but her future is now out of her control

I’ve interviewed Angela Rayner a number of times and know her to be a robust operator with a very thick skin. 

But on Wednesday morning, as she walked into our interview to admit that she had underpaid tax on her Hove home and explain the personal circumstances around that, she was visibly upset.

For days, this story has run on and now we have a better picture of why. The deputy prime minister told me she had to ask for court permission to release details of her domestic arrangements to give the background to the tax trouble she now finds herself in. And on Wednesday, she revealed all.

Politics latest: Why the deputy PM nearly resigned

It is a complicated and personal story, but in essence, her family had a trust set up in 2020 to provide for her son who has lifelong disabilities to ensure that he would be provided for and protected.

When she divorced her husband in 2023, some of the interest in the family home was transferred to the trust and then in 2025, she sold her remaining interest in the property to her teenage son’s trust.

She then used the proceeds from that to buy the new property in Hove, using the money from her family home in Ashton to pay the deposit.

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Rayner admits she didn’t pay enough tax

Ms Rayner says she was advised that the home she bought was liable for the standard rate of stamp duty. It now turns out that advice was wrong and she owes tens of thousands in underpaid tax, because Hove is classified as her second home rather than her main residence.

She says it was a genuine mistake and has referred herself to the PM’s independent standards commissioner and informed HMRC. She says she will pay any additional tax owed.

The deputy PM was clearly upset in our interview by having to disclose private details about her teenage children.

I was left in little doubt that she had felt forced to share information about them that she really didn’t want to share.

She also admitted that she had discussed packing it all in with her ex-husband and children rather than putting this personal stuff into the public domain, but her family wanted her to go public to answer media reports that she had acted in a “hypocritical way”.

Read more: Angela Rayner a ‘great British success story’, says PM

Ms Rayner appeared at PMQs moments after the interview
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Ms Rayner appeared at PMQs moments after the interview

“We felt that under the circumstances that having that reputation, for me as their mother, was more damaging than correcting the record on what we were trying to do,” she said.

But this is much more than just trying to save Ms Rayner’s reputation. Her political career is on the line, and, at the moment, it is unclear whether she will be able to continue as deputy prime minister.

She told me in our interview that the prime minister “knows the circumstances” and “knows the challenges that my son has faced and the background to all of that”, and it is now for the PM’s independent adviser on ministerial standards, Sir Laurie Magnus, to look at the evidence that she was advised she did not have to pay a stamp duty surcharge.

He has a reputation for being quick and if he finds Ms Rayner broke the ministerial code, it will be hard to see how Sir Keir Starmer will not accept that advice.

On top of that, HMRC is also investigating the deputy prime minister and if she is found to have been careless around her tax, she might face a penalty on top of the stamp duty owed, which will again put her under huge pressure.

There is also the political fall out for a politician who has gone in hard on Tories over tax questions for years.

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Angela Rayner blames incorrect tax advice

Defending her from the attacks that are now surely to come is going to burn through a lot of political capital of a government already in trouble. Will her colleagues around the cabinet table and on the backbenches have the stomach for it?

When I asked her in our interview whether she really believed her position was sustainable, given she had underpaid on tax and that she was the housing minister, she told me that she hoped “people can see what has happened and see that I wasn’t trying to dodge tax”, and when she realised that advice was inaccurate she “took immediate steps to do the right thing -you should pay the tax that is owed”.

“Hopefully, people can see there isn’t any intention to deceive, to avoid, to be hypocritical in the way in which I have conducted myself,” she said.

Ms Rayner is never far from the headlines and has often found herself under fire in her political career, rising to the second most powerful office in the country from the most humble of backgrounds.

But she knows too that despite complicated family issues, she has made a very serious error indeed and one which she would have been quick to criticise had the perpetrator been a political opponent.

She has come out fighting today, but whether she can survive is now beyond her control.

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Angela Rayner: ‘Victim of misogyny’ or ‘freeloading’ deputy prime minister?

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Angela Rayner: 'Victim of misogyny' or 'freeloading' deputy prime minister?

To her most savage critics – from Tories to the far left – she’s “Rotten Rayner”, a tax evader, freeloader and a “low life… on the make”.

To her trade union friends, she’s a victim of misogyny who right-wing politicians are attempting to hound out because she’s working class.

And after her tearful interview on Sky News, even among some of her political opponents there’s a degree of sympathy for Angela Rayner too.

Politics latest: Why the deputy PM nearly resigned

But amid the rancorous debate among MPs about whether she should stay or go, there’s one part of her defence that is attracting scepticism from friends and foes.

That’s her claim that she was initially given duff advice by a solicitor. Really? If she has evidence to substantiate that, she may be in the clear, though there’d no doubt be accusations of an establishment stitch-up.

But if not – and the city grandee who’s the PM’s ethics adviser – the Eton and Oxford-educated baronet Sir Laurie Magnus – rejects her defence, she’ll almost certainly have to go.

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And with her resignation – or sacking – would almost certainly go her hopes of succeeding the increasingly unpopular Sir Keir as Labour leader, despite her popularity with the party’s activists.

When she arrived for Prime Minister’s Questions, just half an hour after her bombshell confession, the Labour high command placed a collective arm around her.

Sir Keir Starmer, who told MPs he was proud to sit alongside a deputy PM from a working-class background, put his hand on her left shoulder.

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Beth Rigby on Angela Rayner’s uncertain future

Lucy Powell, the leader of the Commons, sitting the other side of the beleaguered Ms Rayner, did the same on her right shoulder.

Rachel Reeves, who also knows all about being beleaguered and shedding tears in public, looked across at her and smiled sympathetically.

If Labour feared a brutal PMQs onslaught from Kemi Badenoch, they needn’t have worried. “Why is she still in office?” the Tory leader began. So far, so good.

“If he had a backbone he would sack her,” she said in the second of her six questions. But that was it. “But let us get back to borrowing,” she continued.

Inexplicably, the Tory leader ploughed on with her pre-prepared questions on government borrowing. Labour MPs couldn’t believe their luck. Cue numerous jokes about missed open goals.

After another dud Kemi-Kaze performance at PMQs, some MPs were even speculating that Ms Rayner’s survival prospects – slim, at best – remain better than those of the Tory leader.

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Badenoch calls on PM to sack Rayner

But in the cruel world of social media, Ms Rayner was not spared a vicious onslaught from critics from across the political divide. You’d better keep your phone switched off, Angi.

From the spiky shadow foreign secretary Priti Patel, Ms Rayner was “the property tax dodging, freeloading deputy prime minister” who had “finally admitted breaking the law and evading paying taxes owed”.

There was more. “She says that’s she’s sorry,” said punchy Priti. “But she’s only sorry that she was caught out. Rotten Rayner should go.”

Nadhim Zahawi, who was sacked as Tory chairman in 2023 after an inquiry found he failed to disclose an investigation into his tax affairs, added: “Did you think about my children Angela Rayner?

“Breaks my heart seeing anybody distressed about their children, but the hypocrisy really does hurt.”

But it wasn’t just Tories – who let’s not forget were denounced as “Scum!” by Ms Rayner back in 2021, in what she described as “street language” – who were brutal.

Read more:
Rayner admits she should have paid more stamp duty
Rayner came out fighting in Sky interview
Rayner’s tax affairs statement in full

The acerbic George Galloway declared: “She’s a lowlife”. For good measure, he claimed she was “on the make” and on “Supermarket Sweep, piling her trolley full”.

However, from the trade union movement, which campaigned hard for the DPM’s workers’ rights legislation, there was unequivocal support.

TUC general secretary Paul Nowak told Sky News: “Angela Rayner comes under sustained coverage because she’s a working-class woman in a way that frankly Nigel Farage, leading members of the shadow cabinet, never would.

“I think there’s a real heavy dose of misogyny when it comes to Angela.

“I wouldn’t want to see a hounded out of an important role by right wing politicians and the right wing media who frankly can’t handle the fact that a working class woman is our Deputy Prime Minister.”

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But there was sympathy from one party leader, Sir Ed Davey of the Liberal Democrats, who said that as a parent of a disabled child “I know the thing my wife and I worry most about is our son’s care after we have gone”.

Shortly after PMQs, opening a Tory debate on, yes, property taxes, shadow chancellor Sir Mel Stride opted for ridicule and mockery. “I’m absolutely certain that the deputy prime minister had a good recess,” he began.

“We saw many photographs of her down at the seaside, just off the coast in a rubber dinghy, rather like many of the other photographs over the summer given the reckless policies this government has towards illegal migration.

“She was probably celebrating the acquisition of another property for her property empire, but perhaps also slightly tinged with that nagging doubt as to whether she had indeed paid enough stamp duty.

“Well, we’ll get to the bottom of that in due course.”

Quite so, Mel. We will.

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Angela Rayner’s tax affairs interview in full

Let’s also reflect that on Monday Sir Keir Starmer proudly announced: “Phase two of my government starts today.” On Tuesday, he informed MPs, he was “speaking at length” to Ms Rayner. Must have been awkward.

And on Wednesday, the PM had to watch her tearful confession, just minutes before facing MPs in the Commons.

Not a great start to phase two, prime minister. Nor for his embattled and tearful deputy, who’s now fighting for political survival.

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Angela Rayner’s explanation for stamp duty error not the end of the matter

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Angela Rayner's explanation for stamp duty error not the end of the matter

Angela Rayner’s explanation for her failure to pay the correct stamp duty on her home in Hove rests on a claim that she was wrongly advised about her tax exposure when buying the property earlier this year.

Following media reports that she had avoided tax of up to £40,000 she took fresh advice and now acknowledges she should have paid the second-home stamp duty surcharge, taking the tax owed on the £800,000 property from £30,000 to £70,000.

She says the confusion lies in the complexity of her domestic affairs, arising from arrangements made to care for her son, who has “lifelong disabilities” and special educational needs.

Politics latest: Angela Rayner facing calls to quit

In 2020 an award was made to Ms Rayner‘s son following what she called “a deeply personal and distressing incident” as a premature baby, and a trust was established to manage the award and his interests.

She is not explicit in her statement but it is presumed the “award” was financial, potentially made in compensation.

Ms Rayner says she and her then husband Mark Rayner committed to transfer their interest in the family home in Ashton-under-Lyne to the trust, of which their son is the sole beneficiary.

More on Angela Rayner

In 2023, the couple divorced but agreed that their children would remain in the family home while they routinely moved in and out to care for them, an arrangement known as nesting. At that time, Ms Rayner said some of their interest in the family home passed to her son’s trust

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Rayner admits she didn’t pay enough tax

In January 2025, the deputy prime minister says she sold her remaining interest in the home to her son’s trust and used it as a deposit on a flat in Hove, valued at around £800,000. She took out a mortgage to cover the remainder of the purchase.

At the time, she says she took tax advice and was told that, given she no longer owned any other property, she was only required to pay standard stamp duty, which would have totalled around £30,000.

Money latest: Wetherspoons stops accepting some banknotes in England

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Badenoch: Sack Rayner

Following media reporting last month she says she sought fresh advice from “senior tax counsel” and was told she was in fact liable to pay the second-home stamp duty surcharge, an additional 5% flat charge, because of what she calls “complex deeming provisions” relating to her son’s trust.

Deeming provisions are a legal device that create a “legal fiction” to simplify complex issues, often in relation to tax.

Ms Rayner gives no details of the provisions, but one explanation is that if she has rights under the terms of the trust to live in the family home for life, it should be treated as her main residence for the purposes of stamp duty.

HMRC’s guidance on the higher rate of stamp duty states parents of under-18s are treated as the owners of residential property “even if the property is held through trust and they are not the trustees”.

She says that the Ashton-under-Lyne property remains her family home, where she is registered for official, financial and medical purposes.

Read more:
Rayner admits she should have paid more stamp duty
Rayner came out fighting in Sky interview
Rayner’s tax affairs statement in full

In December 2024, Ms Rayner was granted the use of a grace-and-favour flat in Admiralty House in Whitehall in her role as deputy prime minister, and gave up a rented property in London to move in. She had classified this as her second home for council tax purposes, which as a consequence is paid for by the government.

The advice that counts now is that which Sir Laurie Magnus gives to the prime minister. The government’s independent ethics adviser may want to know if Ms Rayner provided the full facts regarding the trust and her main home to her first tax adviser, or whether by omission the fault lies with her.

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