FLASH TRAFFIC: CHINA'S COMMERCE MINISTRY HAS BANNED SENIOR EXECS OF RAYTHEON MISSILES & DEFENSE, AND LOCKHEED MARTIN, FROM ENTERING, WORKING, STAYING, AND RESIDING IN CHINA.
CHINA WILL NOW ENFORCE ITS FEB 16 BAN ON CHINESE ENTERPRISES FROM CONDUCTING IMPORT & EXPORT ACTIVITIES WITH ABOVE U.S. COMPANIES.
This is said to include Microchips from "Taiwan, China."
Of course, the U.S. considers Taiwan to be "independent" but yet adopted the "one China policy."
If Raytheon and Lockheed-Martin cannot engage in Imports/Exports to or from China, and if the ban on Microchips is enforced, the two most major players in U.S. National Defense manufacturing are immediately crippled.
In addition, the U.S. weapons SALES to Taiwan, will not be able to take place because the missiles and such that Taiwan is trying to buy, cannot now be shipped to Taiwan.
Put simply, China just put a total halt to US defense sales to Taiwan, and crippled the US Defense manufacturing industry by cutting off microchips.
Raytheon and Lockheed Martin face serious risk if their rare-earth supplies are also affected by the sanctions, according to Wu Chenhui, an independent industry analyst who follows the rare-earth industry.
Wu told the Global Times that Lockheed Martin, now on the banned entity list, may have to source its rare-earth supply, especially that of heavy rare-earth elements, from elsewhere.
Given China's dominant position in global rare-earth supply, substitutes may not be found in time. This would mean production of the company's F35 jet and many other high-tech weapon systems may face a temporary slowdown or suspension.
If China decides to expand the range of its ban to components produced by other countries that contain Chinese-made rare-earth elements, the depth and scope of the new bans will be deeper and wider, Wu noted.