China announced sanctions against Boeing and two other defence firms on Monday. The development comes when Taiwan is celebrating its presidential inauguration today. The Ministry of Commerce in China imposed sanctions on the firms for arms sales to Taiwan, a self-governed island which is considered a part of its own territory by China.
According to a report by AP, the authorities in China put Boeing's Defence, Space & Security Unit, General Atomics Aeronautical Systems, and General Dynamics Land Systems, on an 'unreliable entities' list. The list bars the firms from undergoing any further investment in China and also places travel restrictions on the senior management for these companies.
Taiwan's new president, Lai Ching-te, has committed to strengthening the security of Taiwan by importing advanced fighters, technology to help empower the domestic defence industry.
Earlier in April, China imposed a hold on assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held within the country. Official filings indicate that General Dynamics control nearly half-dozen Gulfstream and jet aviation service operations in China. Notably, China has been trying to establish its presence in the aerospace tech field, however, it remains reliant on the foreign technology to a good extent.
The firm also facilitates in developing the Abrams tank, being acquired by Taiwan as an alternative to the outdated armour meant to deter or resist an attack from China.
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General Atomics also makes the Predator and Reaper drones, that are used by the US military, however, it remains unclear what weapons are exactly sold to Taiwan, if any.