On December 26, China launched a counterattack against U.S. defense companies!
China is an important supplier of global manufacturing and many key raw materials (such as rare earths). Although these U.S. defense companies may have tried to "decouple" their supply chains, completely getting rid of the Chinese supply chain would increase their production costs and complexity.
Travel bans and transaction restrictions on these executives not only affect them personally, but could also disrupt the company's global decision-making and team management efficiency. For example, Northrop Grumman, a top global defense contractor, has had its direct and potential collaboration paths for components such as the B-21 bomber, missile defense systems, and advanced sensors completely blocked.
Another example is Boeing, whose global supply chain includes many Chinese suppliers. Although the purchase of civilian components may not directly violate the sanctions, it would greatly increase the compliance complexity and cost of its supply chain management.
Original article: toutiao.com/article/1852628304443395/
Statement: This article represents the views of the author himself.