CHINA SANCTIONS US DEFENSE COMPANIES. The problem is Taiwan
After Beijing sanctioned Lockheed Martin for its involvement in "Torpedoes for Taiwan", the CCP is pursuing more economic attacks on US defense contractors, ensuring that China's response, and its resulting economic impact, will be high. to a major talking point and – more importantly – another risk factor for already uneasy markets struggling to digest political uncertainty combined with new record numbers of COVID-19 cases in the US and Europe.
According to Reuters, Beijing has decided to impose sanctions on Boeing's defense unit Raytheon and (again) Lockheed. The news was announced by the spokesman for the Ministry of Foreign Affairs Zhao Lijian. He did not explain what the sanctions will entail.
The sanctions come as the State Department approved the sale of three weapon systems to Taiwan, including sensors, missiles and artillery worth about $ 1.8 billion as the Trump administration abandons caution and goes all-out. in order to strengthen Taiwan's defense capabilities, even as Beijing adopts an increasingly belligerent rhetoric on the "red line" which for it is the policy linked to Taiwan.
"To safeguard our national interests, China has decided to take the necessary measures and impose sanctions on US companies such as Lockheed Martin, Boeing Defense and Raytheon, and those people and companies that have misbehaved in the arms sales process,"
Now China is not a major customer or component supplier, but the signal is bad for relations between the US and China. Markets have faltered since its latest round of sanctions was announced, but in reality the threat is not so much to the companies affected by the sanctions, but rather to all the companies that have close ties with China in other sectors as well. Tensions in China's Mr and the Taiwan Strait are mounting and could reach a breaking point.
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The article CHINA SANCTIONS US DEFENSE COMPANIES. The problem is Taiwan comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-cina-sanziona-le-societa-dell-difesa-usa-l-problema-e-taiwan/ on Mon, 26 Oct 2020 20:55:46 +0000.