On January 2, 2025, China announced sanctions against ten American companies and their executives, including several subsidiaries of Lockheed Martin, due to their involvement in arms sales to Taiwan.
Beijing considers Taiwan, which has its own democratic government, as part of its territory and does not rule out the use of force to reclaim it. Under President Joe Biden, the United States has conducted multiple arms sales to Taiwan, inciting China's anger, which views these actions as an affront to its sovereignty.
As a result, the Chinese Ministry of Commerce placed several American companies on a 'unreliable entities list' for their participation in arms sales to Taiwan, according to a statement.
The affected companies include various entities of Lockheed Martin, the missile division of Raytheon, and three companies from the defense giant General Dynamics. These companies will no longer be able to conduct imports or exports related to China, nor invest in the Asian country. Their senior executives will also be barred from entering Chinese territory.