Boeing’s (BA) - Get Report defense unit, as well as Lockheed Martin (LMT) - Get Report and Raytheon Technologies (RTX) - Get Report, is facing possible sanctions from the Chinese government following U.S. approval of $1.8 billion in arms sales to Taiwan.
The State Department last week approved $1.8 billion in new weapons for Taiwan and submitted the package to Congress for final review. Boeing Defense, Space & Security, a division of Boeing based in Arlington, Va. that makes military and aerospace products, is one of the companies involved in the sale.
The submission comes as tensions between the U.S. and China continue to percolate, with President Trump continuing to blame China for the coronavirus pandemic and its global spread.
It also comes at a particularly tough time for Boeing, which has seen its aviation business decimated by the pandemic as well as the grounding of its 737 MAX jets, two of which crashed in 2019 due to software malfunctions, killing a combined 346 people.
China was the first place to ground the plane, and also has the world’s biggest 737 MAX fleet.
The sanctions will be imposed “in order to uphold national interests,” Chinese Foreign Ministry spokesman Zhao Lijian told news media Monday in Beijing.
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