All U.S. companies related to the $6.4-billion arms sales to Taiwan will lose large orders from the Chinese mainland.

At a press conference on February 2, Ma Zhaoxu, spokesman of the Ministry of Foreign Affairs, said China would place sanctions on U.S. companies that insisted on selling arms to Taiwan. Their market share in China could be crippled by their presumptuous actions.

U.S. companies involved in the arms sales to Taiwan include the Boeing Co., United Technologies, Lockheed Martin Corp. and Raytheon Co., among others. Raytheon has failed to secure business with the Chinese mainland since 2004 as a result of its repeated arms sales to Taiwan.

Rockwell Collins Inc. was reported to have sold Link-16 terminals for fighters, surveillance aircraft, and bombers worth $340 million to Taiwan. However, compared to possible orders from the Chinese Aviation Industry Corp. to build aircraft with Rockwell's independent intellectual property rights, the American company's arms sales to Taiwan was not a smart business decision.

Boeing's fate in China has aroused the biggest concerns. Boeing is expected to sell $37 million worth of Harpoon missiles to Taiwan, but will probably lose billions of dollars in orders from the Chinese mainland, as the price of the missiles is even less than the cheapest Boeing 737 civil aircraft. At present, more than half of the civil airplanes in the mainland are produced by Boeing. The U.S. aircraft maker also predicted China will need 3,700 more airplanes worth $400 billion in the coming two decades.