Turkey Defense Deal Goes to China Company Sanctioned Over Iran

Turkey picked a state-run Chinese company over U.S. and European rivals to co-produce missile defense systems as it seeks partnerships capable of growing domestic arms production amid a military buildup in the region.

While the company, China Precision Machinery Import-Export Corp., or CPMIEC, has been sanctioned by the U.S. for alleged missile sales to Iran, the multibillion dollar partnership will boost Turkey’s defense industry and serves the nation’s goal of diversifying arms suppliers, according to Nihat Ali Ozcan, an analyst at the Economic Policy Research Foundation in Ankara.