Earlier today, China’s Ministry of Commerce (MOFCOM) announced sanctions under China’s National Security Law, Foreign Trade Law, and Anti-Foreign Sanctions Law against 28 U.S. companies described as “unreliable entities.” Included in the list of companies sanctioned are defense contractors Boeing, General Dynamics, Lockheed Martin, and Raytheon.
The change in trade policy comes after China announced sanctions last month restricting the export of dual-use metals to the U.S. That move was in response to U.S. trade restrictions against Chinese semiconductor-related exports.
China’s new sanctions include a ban on import and export activities, restrictions on investments, and travel restrictions on senior management personnel of the listed companies. According to the MOFCOM announcement, the ministry will adopt the following measures:
1. Prohibit the [listed] enterprises from engaging in import and export activities related to China;
2. Prohibit the [listed] enterprises from adding new investments in China;
3. Prohibit the entry of senior management personnel of the [listed] enterprises;
4. Not approve and cancel the work permit, stay or residence qualification of the … senior management personnel of the [listed] enterprise in China.
China says the sanctions are intended to safeguard its national security interests. The move reflects the increasing tensions between China and President-elect Donald Trump’s incoming administration.
MOFCOM’s announcement further specified that export activities must cease immediately unless approved by the Ministry of Commerce:
To safeguard national security and interests [and] fulfill international obligations such as non-proliferation … :
1. It is forbidden to export dual-use items to the 28 US entities mentioned [and] relevant export activities being carried out should be stopped immediately.
2. If the export is indeed required under special circumstances, the export operator shall apply to the Ministry of Commerce.
This announcement will be formally implemented from the date of publication.
The announcement listed the 28 sanctioned companies:
1. General Dynamics
2. L3Harris Technologies
3. Intelligent Epitaxy Technology
4. Clear Align LLC
5. Boeing Defense, Space & Security
6. Lockheed Martin Corporation
7. Raytheon Missiles & Defense
8. Lockheed Martin Missiles and Fire Control
9. Lockheed Martin Aeronautics
10. Raytheon/Lockheed Martin Javelin Joint Venture
11. Raytheon Missile Systems
12. General Dynamics Ordnance and Tactical Systems
13. General Dynamics Information Technology
14. General Dynamics Mission Systems
15. Inter-Coastal Electronics
16. System Studies & Simulation
17. IronMountain Solutions
18. Applied Technologies Group
19. Axient
20. Lockheed Martin Missile System Integration Lab
21. Lockheed Martin Advanced Technology Laboratories
22. Lockheed Martin Ventures
23. Anduril Industries
24. Maritime Tactical Systems
25. Pacific Rim Defense
26. AEVEX Aerospace
27. LKD Aerospace
28. Summit Technologies Inc.
