China says "naughty Lockheed"

This sort of makes me scratch my head a bit.China is imposing "sanctions" against Lockheed Martin over missile parts being sent to Taiwan..seems Just some usual Chinese fist shaking I gather as I couldnt think of "anything" that Lockheed has in China..
Bad,Bad Lockheed

a reply to: Blackfinger

They had no problem with Clinton giving them China missle technology.

Eff China.

Defense contractors shouldn't be making/sourcing snip in either China or Taiwan.

a reply to: Blackfinger

Oh naughty Lockheed and dumb China unless they can find some other way of stealing US aviation technology than letting the odd spy plane (usually an aging lockheed model unless my memory is failing me - probably but what was I saying) land on there territory.

Xi had to do something to appease the Politiburo, I feel his days may be numbered as Emperor of China, in favor of a more fanatical and aggressive leader.

The US should send more missiles to the Republic of China.

in fact lift the arms restrictions on the Republic of China entirely and allow them to buy whatever they want. I'm sure they'd welcome the ability to replace those M48 Pattons and F-5s with M1 Abrams and F-15s. Probably want to update their fairly aged Navy as well. Rather important for an Island nation I do believe.

Deterring Chinese Communist aggression against the Republic of China & others in the region should be one of NATO's main roles in the future, in my opinion. The Russian "threat" is long gone. They'd be a very useful ally against the Chinese Communists.

They have only become more brazen in their aggressive imperial expansionism this past year.

This is a retaliatory move not really meant to be effective in traditional western markets. The consequences will be visible in smaller nations doing business between both parties, especially any states participating in the BRIC, Asian development Bank and some other financial blocs and development agencies.

What it does in these countries is draw a line between their contracts with both parties and see who is politically aligned with who.

Maybe Malaysia or Indonesia or Laos or Georgia or Cameroon or Djibouti will see situations where they have to decide for spare parts for their jets or radar equipment or whether to maintain a consumer products supply chain with China. It would only be pocket change for the most part to Lockheed, but there will still be a loss in revenue which can effect share prices if a dozen or so of these countries opt for their Chinese supply chains.

This does not effect anyone with serious independent force projection. Australia might buckle in some instances here.

Do you think us asking them to close their consulate in Houston has anything to do with this? Lockheed has a huge presence in Texas

originally posted by: worldstarcountry
It would only be pocket change for the most part to Lockheed, but there will still be a loss in revenue which can effect share prices if a dozen or so of these countries opt for their Chinese supply chains.

Lockheed shares fell only 1% on the news, so the market didn't initially seem too concerned about it with the drop being that small.

Chinese retaliation is measured because the bulk of their business comes from the US and no other nation comes close to that scale of business.

In otherwords, their power to punish beyond their neighbors and smaller nations becomes seriously reduced against the likes of the US.

As indicated already, the market barely blinked and business as usual.

The same doesn't hold true for the US, which can sanction at will and cause serious economic damage.

a reply to: Arbitrageur
That was just on the declaration alone. But if any small states actually oblige and choose China, it would depress further. Thenpoint is the consequence of this action cannkt be measured for at least three months as agency heads and foreign ministers still need time to see if they can get around them or negotiate.

For all we know china will donthe same thing usa did when it came to the iran energy sanctions. We gave a bunch of people temporary passes until they could get their plans together for dealing with it.

Either way, as i did say regardless of the outcome it would still be pocket Change in regards to the financial impact on Lockheed as the majority of its business are with North American and European governments and companies not aligned primarily with China to begin with.