China Sanctions Lockheed Martin And Northrop Grumman Concerning Arms Sales To Taiwan: Report

The Chinese foreign ministry reportedly said the country is set to impose sanctions against the U.S. aerospace and defense firms Lockheed Martin Corp LMT and Northrop Grumman Corp NOC.

The decision by China comes after it alleged that the two companies provided weapons to Taiwan, according to a report from Reuters.

The sanctions will be executed under China's Anti-Foreign Sanctions Law, the report quoted ministry spokesperson Mao Ning.

"We urge the U.S. side to effectively abide by the one-China principle... cease U.S.-Taiwan military liaison and stop arming Taiwan, or else it will be subject to a resolute and forceful retaliation by the Chinese side," she said.

The report noted that U.S. President Joe Biden had approved $80 million in funds to Taiwan last month.

China wants the autonomous Taiwan to accept Chinese sovereignty and has never used force or violence to achieve the goal.

However, Taiwan has reported dozens of Chinese fighters, bombers and other aircraft flying into its air zone this week.

The report cited Mao Ning saying Lockheed Martin's Missouri branch is a prime contractor that was directly involved in an arms sale to Taiwan on August 24.

Also Read: Lockheed-RTX JV Inks MoU In Poland To Build Javelin Anti-Tank Weapon System

Price Action: LMT shares closed higher by 1.16% at $425.89 on Thursday.