China’s threat to sanction U.S. firms in arms sale could backfire
Beijing could undermine its own aviation industries by punishing firms involved in the Pentagon’s plan to sell $6.4 billion in arms to Taiwan.
Shanghai – China’s threats to punish U.S. companies involved in a major arms sale to Taiwan are raising questions over whether Beijing could pull it off without undermining its own aviation industries.
China has not said what sanctions it might impose to penalize the companies involved in building the arms for democratic-ruled Taiwan. But the roster of potential targets is an A-list of U.S. defense contractors, including Boeing Co., Lockheed Martin Corp. and Raytheon Co.
The Pentagon’s plan to sell $6.4 billion of arms to the island, which China claims as its own territory, has drawn a barrage of criticism since it was announced Friday. Beijing quickly suspended military exchanges with Washington and announced the unprecedented threat of sanctions.
“This is the first time the government has issued such an announcement, and I think they are very serious,” said Wu Xinbo, a professor at the Center for American Studies at Shanghai’s Fudan University.
In Washington, a White House spokesman said it would “not be warranted” for China to slap sanctions on the U.S. companies over the Obama administration’s plans to sell arms to Taiwan.
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