China-U.S. relations have always been a point of international attention, with the United States crazy in the "mining district bubble", China-U.S. relations are now also increasingly tense. 2 years ago, the two major arms merchants in the United States were fined by China $144.66 billion, but never paid a fine, China will use what methods to counter?
Punishment is difficult to pursue, Black interrupts business.
In 2023, the Chinese Merchants Department made a decision to add two large U.S. arms dealers to the list of "unreliable entities", namely Lockheed Martin Corporation (LMT) and Raytheon Missile and Defense Corporation (RTX). After the black list, the Chinese side also issued them a sky-high fine, up to 14.4 billion US dollars, equivalent to about 99 billion RMB.
It is said to be a fine, but in fact, this astronomical figure is equivalent to China's unilateral sanctions on these two companies. What exactly did these two companies do that China would be so angry?
All this was closely related to the Taiwan issue.The U.S. government at the time was still chaired by Biden, and after the Taiwan issue broke out, the Biden administration approved a proposal to sell Taiwan F-16 fighter jets worth $6.19 billion, as well as aircraft-carrying missiles and related equipment.
This has undoubtedly touched on China's adverse scale. The act of selling arms to Taiwan Province is a provocation to China and a gross interference in China's politics and national policy. China reacted immediately, not only freezing the assets of the two companies in China, but also banning their dealings and cooperation with Chinese enterprises.
The price of the fine is exactly twice as much as the total amount sold by the two companies to Taiwan between 2020 and 2023. But in fact, the fine is more a sign of China’s position and a harsh condemnation of U.S. behavior because the U.S. is clearly not going to submit the fine.
Although China has frozen the assets of two companies in China, the two companies have cleared assets almost as much before, and the remainder is only nine.
Although the freezing of assets can not sanction them, but to "draw black" may torture them enough. In 2020, the Chinese side has sanctioned LMT once, then is not only a small test bullshit, but also let its share price drop by about 2%. and this time directly to Black is not as simple as the share price drop.
LMT and China had in-depth cooperation before, including civil aviation construction, and even the air traffic control system of Hangzhou and Shang Airport also participated in it. At the same time, it has also established a joint venture with Changhe Aircraft Company, holding about 49% of the shares, nearly half.
In addition, in the development and production of the LMT fighter aircraft, the figure of Chinese suppliers is everywhere, including its F-35 fighter aircraft. This Chinese cut, even without injuring the large arteries of LMT, can keep it slow for a long time.
At the same time, Raytheon is not much better. In April 2024, Raytheon's previous radar upgrade cooperation contract worth US $41.2 million was also added to the sanctions list.
China's sanctions are not just as simple as two companies, but by January this year, 28 more U.S. companies were included in export controls, and even a whole 10 were drawn close to the "list of unreliable entities".
This harsh sanctions completely blocked the door of cooperation between the two technologies and products used by the Chinese and U.S. military citizens.China's attitude is clear, is to resolutely oppose U.S. arms sales to China.
Stopping the throat of American resources
The impact of market sanctions on U.S. arms sales is ultimately limited, after all, China is not a major exporter of U.S. military industry. China can really make the U.S. feel war, or in terms of resources to impose sanctions on the U.S., which is also the U.S. most feared.
The modern military industry is the most inseparable of several key minerals, China has a lot of reserves, and exports are also ranked at the top in the world. Just like the production of ammunition, batteries and other items and new materials "cyanide", China's output accounts for about 84%, and LMT and Raytheon's missile radar systems need this mineral.
In 2024, China, for reasons of national security, implemented partial restrictions on the export of uranium, and implemented the system of export licenses.This system has a greater impact on countries, which makes the export volume of uranium directly in the future 97%, and the price in the global market doubled.
Naturally, the United States is also in the influence area. Although antimony is produced and exported in other places, compared with the antimony produced in China, the output and quality are far behind, which also makes the United States unable to find a way out for a while.
In addition to uranium, the key "uranium and uranium" in the manufacture of chips and laser equipment, China's output and quality also have an important position internationally.
At the beginning of this year, China directly caught the United States off guard and banned the export of a variety of superhard materials, including antimony, gallium, and germanium, to the United States. This is a powerful counterattack to the U.S. chip sanctions, and it also blocks the U.S. resource card.
The more high-end military equipment and weapons, the more dependent on medium-heavy and rare earth. for the United States, a country known for its scientific and technological power, the medium-heavy and rare earth is a very important material.
Most of the rare earth in the United States is light rare earth, which is far from useful for the United States, so the United States is very dependent on medium and heavy rare earth.
How can China not know, but the United States has recently used a knife to China on tariffs, and then made some "moths" on Taiwan Province. So China imposed export controls on a variety of rare earth elements in April this year, which must be a warning to Trump and his administration.
The United States must not attack the mind of Taiwan, China-U.S. relations need the U.S. side to take a stand.
The United States always delusions to put China in an opposite direction, continuously trying to sanction China, but the attitude of the Chinese side is always "mild, gentle, gentle". but only Taiwan side, China has alwaysined a zero tolerance attitude.
The United States should not move any of Taiwan's thoughts, let alone the horrific behavior of providing weapons to Taiwan.The United States must uphold the one-China principle and must not interfere in China's internal affairs.This is also where the United States has always been condemned.The United States always wants to follow its "hegemon" status and interfere in the internal affairs of other countries.
Sino-US relations are tense, and it can be seen that both the US and China will be contained by each other. If the United States is always unwilling to take a peaceful attitude, the final result will only be a lose-lose. If the two sides can adopt new diplomatic relations, seek a harmonious way of competition instead of struggle, and make progress in competition together, it will be the way out for the relationship between the two sides. The key to this lies in whether the US side can move forward and show its attitude.
References:
“Ministry of Commerce: Including 28 U.S. Entities in the Export Control Control Control List” Beijing Commercial Journal January 2, 2025
Announcement of the Working Mechanism for the List of Unreliable Entities concerning the inclusion of Lockheed Martin, Thunderbird Missile and Defense Companies in the List of Unreliable Entities, China, February 16, 2023 17:00
No. 18 of the General Administration of the Ministry of Commerce No. 18 of the General Administration of Customs of the Ministry of Commerce of China No. 18 of the Ministry of Commerce of China No. 18 of the General Administration of Customs of the Ministry of Commerce of China No. 18 of the Ministry of Commerce of China No. 18 of the Ministry of Commerce of China No. 18 of the Ministry of Commerce No. 18 of the Ministry of Commerce No. 18 of the Ministry of Commerce No. 18 of the Ministry of Commerce No. 18 of the Ministry of Commerce No. 18 of the Ministry of Commerce No. 18 of the Ministry of Commerce