China Sanctions Lockheed Martin Subsidiaries, Executives Over Taiwan Arms Sales: Report
China has reportedly imposed sanctions on several subsidiaries and senior executives of Lockheed Martin Corp. (NYSE:LMT) in response to U.S. arms sales to Taiwan.
The sanctions include freezing the assets of Lockheed Martin’s senior executives, including Chairman James Donald Taiclet, and banning their entry into China, reported Reuters.
China’s foreign ministry announced that the sanctions target Lockheed Martin Missile System Integration Lab, Lockheed Martin Advanced Technology Laboratories, and Lockheed Martin Ventures, per the report.
Beijing has repeatedly urged the U.S. to cease its arms sales to Taiwan, a self-governed island that China claims as its own.
Also Read: US And China Confront Taiwan Issue In First Informal Nuclear Talks In 5 Years: Report
This latest round of sanctions is part of a broader effort by China to counter foreign actions against it, especially those related to Taiwan. China’s sanctions law, enacted in 2021, aims to provide legal grounds for retaliatory measures.
This is not the first time China has sanctioned U.S. defense contractors for their dealings with Taiwan. In September last year, China sanctioned Lockheed Martin and Northrop Grumman Corp. (NYSE:NOC).
Prior to that, Lockheed Martin and RTX Corporation (NYSE:RTX) Raytheon faced sanctions in 2019, 2020, 2022, and 2023, with the 2022 sanctions being the first under China’s anti-foreign sanctions law.
Earlier in May, the Biden administration imposed new tariffs on Chinese imports, targeting sectors such as electric vehicles, batteries, and semiconductors.
Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Schwab U.S. Dividend Equity ETF (NYSE:SCHD).
Price Action: LMT shares are trading higher by 0.23% at $467.43 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: AlmostViralDesign On Shutterstock.com