Taiwan last month received a batch of 38 advanced Abrams battle tanks from the US in a significant boost to the island’s land defence capabilities. Another 42 tanks, considered the heaviest in the world, are due to be delivered this year, and 28 the year after.

Lockheed Martin stock drops as Deutsche Bank downgrades citing concerns over F-35 sales due to China's fighter jet progress.

China has imposed sanctions on 10 U.S. defense firms for arms sale to Taiwan, including Raytheon, Lockheed Martin and Boeing Defense. Analysts say the actions are largely symbolic as these companies are already under Chinese sanctions.