China has escalated tensions with the United States by implementing new trade measures aimed at some of the largest American defense companies. On Thursday, Beijing added 28 U.S. firms, including Raytheon, Boeing, and Lockheed Martin, to an export control list, citing the need to safeguard its national security and interests.
The move comes just weeks before President-elect Donald Trump takes office, promising to impose new tariffs and sanctions on China. Beijing’s actions are widely seen as a response to U.S. pressure, particularly on the issue of arms sales to Taiwan, a point of contention between the two nations.
In addition to placing these companies on the export control list, China has also banned the sale of dual-use items—goods with both civilian and military applications—to the targeted firms. Ten companies were added to China’s “unreliable entities list,” preventing them from doing business within China and barring their executives from entering the country.
Raytheon, Boeing, and Lockheed Martin are key players in the defense industry, supplying the U.S. military and its allies with advanced systems. These sanctions are part of a broader strategy to increase pressure on companies involved in military activities, particularly those linked to defense technologies and arms sales to Taiwan.
Andrew Gilholm, an expert at Control Risks, noted that while many of these companies were already under sanctions, the scope of China’s actions has expanded. "What we’re seeing is a widening scope and number of entities being added in a single listing," he said.
Although China has previously taken similar, smaller actions, this new move signals a more aggressive stance in its ongoing economic and political standoff with the U.S. Michael Hart, president of the American Chamber of Commerce in China, pointed out that China had typically been careful not to disrupt business operations for companies that benefit its economy. However, Beijing’s growing frustration with U.S. policies is evident in its recent actions, which are increasingly targeting key industries, especially defense contractors.
These measures are part of a broader economic tit-for-tat, with both the Trump and Biden administrations implementing sanctions against Chinese entities and vice versa. China’s approach, including targeting specific companies in the defense sector, reflects its commitment to defending its geopolitical interests and limiting foreign influence in its domestic affairs.