China sanctions Boeing, Raytheon executives for Taiwan arms deal

China said it is sanctioning two top executives at Boeing and Raytheon Technologies over the US’s biggest weapons deal with Taiwan in almost two years, a move that usually ends up being symbolic for the targeted individuals.

Beijing took the action against Ted Colbert, chief executive officer of Boeing Defense, Space & Security, and Raytheon CEO Gregory Hayes, Foreign Ministry spokeswoman Mao Ning said Friday at a regular press briefing.

“The arms sales gravely undermine China’s sovereignty and security interests, and severely harm China-US relations and peace and stability in the Taiwan Strait,” Mao said, without providing details on the measures. “China firmly opposes and strongly condemns them.”

Previous sanctions by China have restricted people from entering China, Hong Kong or Macau, or doing business there, measures that would likely have little effect on Colbert or Hayes.

In August, China sanctioned House Speaker Nancy Pelosi over a visit to Taiwan — the first by someone in her position in a quarter century. Her trip raised China’s ire because it considers the democracy a part of its territory to be taken by force if necessary, and the People’s Liberation Army responded to her trip with unprecedented military drills and by firing missiles over Taiwan.

Taipei rejects Beijing’s claims, saying it deserves greater recognition on the world stage.

The State Department early this month signed off on the $1.1 billion arms sale for which the Boeing and Raytheon executives were sanctioned. The deal is the largest since a $2.4 billion sale in October 2020.

It includes logistics support for a Taiwanese radar program, up to 60 Harpoon anti-ship missiles and some 100 Sidewinder air-to-air missiles.
 

Both weapons have been sold to Taiwan before, and Ukraine has used Harpoons from the US in thwarting Russia’s attack.

Top banks pull back from metal financing in China
 

JPMorgan Chase & and ICBC Standard Bank are cutting back on financing to China’s troubled metals trade, adding pressure to a sector already hit hard by a struggling economy. 
 

At least three Chinese metal trading companies have had credit lines frozen or reduced by either of the banks in recent weeks, according to people familiar with the matter. The lenders have pulled back after a liquidity crisis emerged at top copper trader Maike Metals International, said the people, who asked not to be identified discussing private information. 

It’s not clear if it is a temporary freeze.

Industrial output up 4.2%
 

China's economy showed surprising resilience in August, with faster-than-expected growth in factory output and retail sales shoring up the recovery from the crippling effects of Covid curbs, heatwaves and property slump.
 

Industrial output grew 4.2 per cent in August from a year earlier, the fastest pace since March, according to the National Bureau of Statistics (NBS). 

Retail sales rose 5.4 per cent from a year ago, beating forecasts for 3.5 per cent growth and the 2.7 per cent gain in July.
 

However, property investment in January-August fell 7.4 per cent year-on-year.