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Defense, because China is waging war on the Americans General Atomics, General Dynamics and Boeing Defense

Defense, because China is waging war on the Americans General Atomics, General Dynamics and Boeing Defense

China has sanctioned three US defense companies for their arms sales to Taiwan. It is not the first time that Beijing has applied sanctions to American companies for military exports to Taipei. Facts, numbers and insights

China strikes again at US defense giant Boeing Defense, Space & Security and two other US military contractors.

China's Ministry of Commerce on Monday announced sanctions against General Atomics Aeronautical Systems, General Dynamics Land Systems and Boeing Defense, Space & Security for arms sales to Taiwan, on the day of Lai Ching-te's inauguration as president, reports the Washington Post citing Chinese state media. Lai Ching-te, Taiwan's new president, has vowed to strengthen Taiwan's security by importing advanced fighter jets and other technologies and strengthening its domestic defense industry.

US companies are banned from carrying out "import and export" business in China, among other sanctions, state news agency Xinhua said, citing the country's commerce ministry.

The move is the latest in a series of sanctions Beijing has announced in recent years against defense companies for selling weapons to Taiwan, a self-ruled island that China considers part of its territory.

Already last February, Beijing had decided to sanction Lockheed Martin and Northrop Grumman for their role in the sale of weapons to Taiwan. Furthermore, also in February 2022 the Chinese government had imposed sanctions against Lockheed Martin and Raytheon again because they were involved in arms sales to Taiwan.

Without forgetting that in September 2022 he announced sanctions against Ted Colbert, president and CEO of Boeing Defense, Space and Security. after the company was awarded a $355 million contract to supply Harpoon missiles to Taiwan.

All the details.

THE NEW SANCTIONS ANNOUNCED BY BEIJING

China's Ministry of Commerce has placed Boeing's Defense, Space and Security unit, General Atomics Aeronautical Systems and General Dynamics Land Systems on what it calls a list of "unreliable entities", banning them from further investment in the country. Furthermore, senior executives of all three companies are banned from entering China, their work permits will be revoked, as well as their visitor and residency status, and any related applications they submit will not be approved, the filing said. ministry announcement, according to Xinhua news.

IT'S NOT THE FIRST TIME

As already mentioned, it is not the first time that Beijing has resorted to the sanctions mechanism to target US defense companies, "guilty" of having conducted business with Taiwan.

The last time dates back to last autumn when the Chinese authorities "decided to include Lockheed Martin Corporation and Raytheon Missiles & Defense, (subsidiary of Raytheon Technologies) which participated in the sale of weapons to Taiwan, in the list of unreliable entities", a note released by the Chinese Ministry of Commerce always explained.

Last month, the United States approved a large military aid package for Taipei, including $1.9 billion to replenish military equipment and training. Another $2 billion will be used for “foreign military financing” for countries in the region.

THE GEOPOLITICAL CONTEXT

These moves aim to isolate the island claimed by Beijing as an "inalienable" part of its territory. Taiwan has faced growing military pressure from China's People's Liberation Army, which regularly flies fighter planes and warships near the island.

The announcement came as Lai Ching-te was sworn in as president of the democratic island, branded by Beijing as a "dangerous separatist" who will bring "war and decline" to the island.

GENERAL ATOMICS AERONAUTICAL SYSTEMS AND GENERAL DYNAMICS LAND SYSTEMS IN THE SIGHTS

In April, China froze the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held in China. Company documents show that General Dynamics runs a half-dozen Gulfstream and aviation services operations in China, which remains heavily dependent on foreign aerospace technology even as it tries to build its own presence in the sector.

The company also helps make the Abrams tank, purchased by Taiwan to replace aging armor meant to deter or resist an invasion from China, AP explains. General Atomics produces the Predator and Reaper drones used by the US military, although it is not clear which weapons the company sells to Taiwan, AP further states.

BOEING DEFENSE, SPACE AND SECURITY BLASTED AGAIN

As regards Boeing Defense, Space and Security, this is the second time that the company has been targeted by Beijing's measures.

In October 2022, China announced sanctions against Ted Colbert, president and CEO of Boeing Defense, Space and Security as a result of his involvement in Washington's arms sales to Taiwan. On September 3 of the same year, the Biden administration approved the sale of $1.1 billion in arms to Taiwan. The approved transfer package included 60 Agm-84L Harpoon Block II anti-ship missiles (Boeing) for 355 million and 100 Aim-9X Block II Sidewinder air-to-air missiles (Raytheon, also hit by sanctions) for 85.6 million. In addition to 655.4 million for the extension of a contract for radar surveillance.

THE CONSEQUENCES FOR US SOCIETY

The likely impact of Beijing's sanctions on companies like Boeing is unclear. The United States bans most sales of weapons-related technology to China, but some military contractors also have civilian businesses in aerospace and other industries.

“All companies that do not do business with Beijing. If Boeing Commercial Aircraft were to be sanctioned, it would ground Chinese airlines" Gregory Alegi, historian and journalist and professor at Luiss Guido Carli, observed on X (the social platform formerly Twitter). In December 2021, China had in fact approved the return to service of Boeing's 737 Max after it was grounded following two accidents involving the airliner. Despite the green light, Chinese airlines have not resumed operations with the 737 Max and have not accepted deliveries of new aircraft. Before the plane was grounded, Boeing sold a quarter of the planes it built each year to Chinese buyers, its biggest customers.

Finally, for Boeing, the Chinese action comes at a delicate time. Its aviation business is grappling with the fallout from the 737 Max 9 door blowout on Alaska Airlines Flight 1282, as well as previous fatal crashes of two 737 Max jets. Finally, Boeing Defense, Space's Starliner program also and Security is put to the test: the very first manned flight test of Boeing's space shuttle has been postponed again, due to further checks due to the technical problems that on May 6th had forced the cancellation of the launch with the Atlas V rocket.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/difesa-perche-la-cina-fa-la-guerra-alle-americane-general-atomics-general-dynamics-e-boeing-defence/ on Mon, 20 May 2024 10:29:47 +0000.