How China Could Affect the Future of U.S. Defense Corporations
Abstract
On January 29, 2010, Washington announced that it would sell $6.4 billion worth of weapons to Taiwan. Beijing responded that it would curtail military exchanges with Washington and, for the first time, announced the possibility of sanctions on the U.S. corporations involved in the arms sale. Instead of its usual protest to the U.S. government, Beijing threatened a broadened attack on the defense corporations involved in the deal and warned that it would hold them accountable if they followed through on the U.S. government's decision. In a lucrative economy like China's, sanctions on American corporations could have a dramatic affect on their global competitiveness. This thesis shows that not only does China have the legal capability to levee such sanctions against U.S. defense-related corporations, but also that such corporations are to a certain degree vulnerable to Chinese pressure because of the internationalization of their civilian sectors. It therefore appears that this new coercive tactic of the People's Republic of China is to leverage the self-interests of these corporations against future sales of weapons to Taiwan.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 2010
- Accession Number
- ADA536529
Entities
People
- Roy D. Chesson
Organizations
- Naval Postgraduate School