China Sanctions 5 US Defense Companies in Response to US Sanctions and Arms Sales to Taiwan

FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)
FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)
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China Sanctions 5 US Defense Companies in Response to US Sanctions and Arms Sales to Taiwan

FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)
FILE - A Switchblade 600 loitering missile drone manufactured by AeroVironment is displayed at the Eurosatory arms show in Villepinte, north of Paris, on June 14, 2022. (AP Photo/Michel Euler, File)

China announced sanctions Sunday on five American defense-related companies in response to US arms sales to Taiwan and US sanctions on Chinese companies and individuals.
The sanctions will freeze any property the companies have in China and prohibit organizations and individuals in China from doing business with them, the Foreign Ministry said in a statement posted online, The Associated Press said.
It was unclear what impact, if any, the sanctions would have on the companies, BAE Systems Land and Armaments, Alliant Techsystems Operations, AeroVironment, Viasat and Data Link Solutions. Such sanctions are often mostly symbolic as American defense contractors generally don't sell to China.
The Foreign Ministry said the US moves harmed China’s sovereignty and security interests, undermined peace and stability across the Taiwan Strait and violated the rights and interests of Chinese companies and individuals.
“The Chinese government remains unwavering in our resolve to safeguard national sovereignty, security and territorial integrity and protect the lawful rights and interests of Chinese companies and citizens,” the ministry statement said.
The announcement was made less than a week ahead of a presidential election in Taiwan that is being contested in large part over how the government should manage its relationship with China, which claims the self-governing island as its territory and says it must come under its rule.
The Chinese Foreign Ministry did not specify which arms deal or which US sanctions China was responding to, though spokesperson Wang Wenbin had warned three weeks ago that China would take countermeasures following the US government's approval of a $300 million military package for Taiwan in December.
The deal includes equipment, training and equipment repair to maintain Taiwan's command, control and military communications capabilities.
The US said the sale would support the modernization of Taiwan's armed forces and the maintenance of a credible defense. “The proposed sale will improve the recipient’s capability to meet current and future threats by enhancing operational readiness,” a news release from the Pentagon's Defense Security Cooperation Agency said.
Taiwan is a major flashpoint in US-China relations that analysts worry could explode into military conflict between the two powers. China says that US arms sales to Taiwan are interference in its domestic affairs.
The Chinese military regularly sends fighter planes and ships into and over the waters around Taiwan, in part to deter the island's government from declaring formal independence. An invasion doesn't appear imminent, but the constant military activity serves as a reminder that the threat is ever-present.
The US switched diplomatic recognition from Taiwan to China in 1979, but it is bound by its own laws to ensure that Taiwan has the ability to defend itself. America and its allies sail warships through the Taiwan Strait, a 160-kilometer (100-mile) -wide waterway that separates the island from China.



Thiel’s Palantir Dumped by Norwegian Investor over Work for Israel

The logo of US software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. (Reuters)
The logo of US software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. (Reuters)
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Thiel’s Palantir Dumped by Norwegian Investor over Work for Israel

The logo of US software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. (Reuters)
The logo of US software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. (Reuters)

One of the Nordic region's largest investors has sold its holdings in Palantir Technologies because of concerns that the US data firm's work for Israel might put the asset manager at risk of violating international humanitarian law and human rights.

Storebrand Asset Management disclosed this week that it had "excluded Palantir Technologies Inc. from our investments due (to) its sales of products and services to Israel for use in occupied Palestinian territories."

The investor, which manages about 1 trillion crowns ($91.53 billion) in assets, held around 262 million crowns ($24 million) in Palantir, a spokesperson told Reuters. A representative for Palantir, based in Denver, did not immediately respond to a request for comment.

Storebrand said Palantir had not replied to any of its requests for information, first lodged in April. The data analytics firm, co-founded by billionaire Peter Thiel, provides militaries with artificial-intelligence models. Earlier this year, it agreed to a strategic partnership to supply technology to Israel to assist in the ongoing war in Gaza.

Palantir has previously defended its work for Israel. CEO Alex Karp said he was proud to have worked with the country following the Hamas attacks in October last year and in March told CNBC that Palantir had lost employees and that he expected to lose more over his public support for Israel.

Storebrand's exit follows a recommendation from Norway's government in March warning businesses about engaging in economic or financial activity in the Israeli settlements in the Palestinian territories, the asset manager said in its third-quarter investment review published on Wednesday. The International Court of Justice, the United Nations' highest court, said in July that Israel's occupation of Palestinian territories including the settlements was illegal.

Israel's foreign ministry rejected that opinion as "fundamentally wrong" and one-sided, and repeated its stance that a political settlement in the region can be reached only by negotiations.

Storebrand said its analysis indicated that Palantir provides products and services "including AI-based predictive policing systems" that support Israeli surveillance of Palestinians in the West Bank and Gaza.

Palantir's systems are supposed "to identify individuals who are likely to launch 'lone wolf terrorist' attacks, facilitating their arrests preemptively before the strikes that it is projected they would carry out," Storebrand said.

It added that, according to the United Nations, Israeli authorities have a history of incarcerating Palestinians without charge or trial. A UN Special Rapporteur said in a 2023 report that "the occupied Palestinian territory had been transformed as a whole into a constantly surveilled open-air prison."

Israel rejected the UN's findings. In September Reuters reported that Norway's $1.7 trillion wealth fund may have to divest shares of companies that violate the fund watchdog's tougher interpretation of ethics standards for businesses that aid Israel's operations in the occupied Palestinian territories.