China sanctions US defence entities

In accordance with its Anti-Foreign Sanctions Law (AFSL), China has announced sanctions on 2 US defence corporations for supplying arms to Taiwan (press release).  According to the China Ministry of Foreign Affairs:

• Lockheed Martin Corporation directly participated in a US arms sale to Taiwan announced on August 24 as the principal contractor; and

• Northrop Grumman participated in several US arms sales to Taiwan.

Beijing did not specify what measures it will take against the 2 entities, but pursuant to Article 6 of the AFSL, if an entity is included on the AFSL “Countermeasure List”, the State Council is entitled to adopt a range of measures, including:

• seize, detain, and freeze movable and immovable property in China belonging to the entity;

• prohibit the entity from conducting transactions in China and cooperating with Chinese entities; and

• “other necessary measures”.