China sanctions two US defense companies over allegations of supporting arms sale

China banned American firms Lockheed Martin Corp. and Raytheon Missiles & Defense from the Chinese market in retaliation for the use of one of their planes and a missile to shoot down a suspected spy balloon that flew over the continental United States last year. 

China has threatened action against foreign companies and governments that aid Taiwan’s defense and the U.S. military presence in the region, leading to commercial boycotts and diplomatic standoffs.

The U.S. remains Taiwan’s most important source of diplomatic support and supplier of military hardware from fighter jets to air defense systems even though there are no diplomatic ties attached.

The two companies did not immediately respond to requests for comment.


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