China sanctions two US defence firms over arms sales to Taiwan

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China sanctions two US defence firms over arms sales to Taiwan
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Beijing says Lockheed Martin is the prime contractor in Washington's arms sales while Northrop Grumman had taken part in similar business 'many times'.

Beijing says Lockheed Martin is the prime contractor in Washington's arms sales while Northrop Grumman had taken part in similar business "many times".China has sanctioned two US defence companies, Lockheed Martin and Northrop Grumman, over their roles in supplying arms to Taiwan, an official announced in Beijing.

US administrations had done so through sales rather than direct aid, but in August Washington for the first time approved direct US military aid to Taiwan under an assistance programme aimed at foreign governments. She said that Lockheed Martin was the prime contractor in US arms sales to Taiwan that took place on August 24 and that Northrop Grumman had taken part in sales"many times".

The $80 million arms package approved in August was small compared with recent sales but was the first assistance to Taipei under the Foreign Military Financing programme, which generally involves grants or loans to sovereign countries.

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