China to Sanction U.S. Aerospace Manufacturers

The Chinese Government has said that China will sanction several US defense companies for selling arms to Taiwan. All three companies are active in the aerospace realm.

On Monday, Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian called on the U.S. to break ties with the government on Taipei, and he announced plans to sanction Lockheed Martin, Raytheon Technologies and Boeing Defense. He did not provide further details of the sanctions, and we’ve waited this week to learn of the details, but none have yet been released.

Zhao’s specificity in naming Boeing Defense could mean that Boeing Commercial Aircraft Group is not affected by the sanctions. This is mere supposition, though; the actual reach of the sanctions is not yet known.

Adam Ni, director of the China Policy Center in Canberra, Australia, suggested that he “suspect[s] the strategy will not be formal sanctions, but rather through administrative regulatory means.” This could include punitive tariffs or similar means that effectively prevent certain business with these sanctioned entities.

We will continue to watch, to learn how this might affect other U.S. aerospace companies.

About Jason Dickstein
Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. Since 1992, he has represented aviation trade associations and businesses that include aircraft and aircraft parts manufacturers, distributors, and repair stations, as well as both commercial and private operators. Blog content published by Mr. Dickstein is not legal advice; and may not reflect all possible fact patterns. Readers should exercise care when applying information from blog articles to their own fact patterns.

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