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Taiwan has been facing escalating tensions with China for years, and the recent arms deal signed by American aerospace manufacturer Lockheed Martin Corp. with Taiwan has only added to the tension. On Friday, China announced that it has imposed a ban on several business units of Lockheed Martin as well as three of its executives in response to the arms deal.

According to China’s Foreign Ministry, Lockheed Martin’s collaboration with Taiwan is seen as a violation of the country’s sovereignty, a recurring theme in China’s discourse on external interactions that support Taiwan’s government. While the sanctions may appear to be largely symbolic, as military cooperation between the U.S. and China has been stagnant since the events of the 1989 Tiananmen Square protests, they reflect China’s stance on issues related to Taiwan.

The banned business units of Lockheed Martin include the Missile System Integration Lab, Advanced Technology Laboratories, and Lockheed Martin Ventures. In addition, top executives James Donald Taiclet, Frank Andrew St. John, and Jesus Malave have been restricted from traveling to China.

China has made substantial strides in developing its domestic aircraft industry, manufacturing parts, planes, and services for companies like Airbus and even producing its own commercial jets. While foreign technology has played a significant role in this progress, Chinese companies are now capable of replacing their international suppliers with homegrown solutions.

Meanwhile, Taiwan heavily relies on U.S. suppliers for arms, despite ongoing efforts to enhance its defense industries and increase the mandatory military service period for men. This is happening against the backdrop of escalating tensions between China and Taiwan, with China aiming to annex the island due to what it perceives as a historical mission

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