China to Sanction Boeing, Raytheon Over Arms Sales to Taiwan

China to Sanction Boeing, Raytheon Over Arms Sales to Taiwan

China will impose unspecified sanctions on Boeing Co.’s defense unit, Lockheed Martin Corp. and Raytheon Technologies Corp. after the U.S. State Department approved $1.8 billion in arms sales to Taiwan last week.

The sanctions will be imposed “in order to uphold national interests,” Chinese Foreign Ministry spokesman Zhao Lijian told reporters Monday in Beijing.

The action follows the State Department’s approval last week of $1.8 billion in sales of new weapons for Taiwan and submission of the package to Congress for a final review. The deals, and an earlier one involving Lockheed F-16 fighters, are taking place amid rising tension between the superpowers ahead of the U.S. election next week.

The new package includes 135 SLAM extended-range land attack missiles from Boeing, Himars mobile artillery rocket systems from Lockheed, and Raytheon surveillance and reconnaissance sensors to be mounted on aircraft.

Boeing fell 2.5% to $163.21 at 9:34 a.m. in New York amid broad market declines. The stock dropped almost 50% this year through Oct. 23. Lockheed slipped 1.7% to $367.89 Monday morning, while Raytheon declined 2.1% to $61.25.