China's Ministry of Commerce announced on Thursday the inclusion of two companies on its unreliable entities list as they sold arms to China's Taiwan region.
The two companies are Lockheed Martin Corporation and Raytheon Missiles &Defense. They will be barred from engaging in China-related import or export activities, and are forbidden to make new investments in China, according to the announcement.
Senior executives of the two companies are prohibited from entering China, while their work permits will be revoked, along with their visitor and residential status, and the applications they submit will not be approved, said the announcement.
The two enterprises also face fines totalling twice the value of their arms sales contracts with the Taiwan region after the implementation of the unreliable entities list system.
They must pay the fines within 15 days, in accordance with related laws and regulations, or other measures will be imposed on them, including an increase in fines, the announcement said.
The measures are being taken to safeguard China's national sovereignty, security and development interests, and are in accordance with related laws and regulations in China, according to the announcement.