The trade tensions between China and the US would be going to rise soon, in response to US Huawei ban, China has decided to blacklist its own foreign firms. On Friday, the world’s most populous nation said that they would create an unreliable list of foreign firms.
In this regard, Gao Feng a spokesman of China’s commerce ministry said today that the country will create an entire list that will include foreign companies that have stopped or reduced working their business with the Chinese firms.
“Foreign enterprises, organizations or individuals that do not comply with market rules, deviate from a contract’s spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be included on a list of ‘unreliable entities’,” he was quoted as saying bystate-owned local media.
Bloomberg also reported that China is now preparing to restrict the exports of rare earth minerals to the US. Simultaneously, Japan SoftBank has announced that it would be building its 5G network with equipment from Nokia and Ericsson, sidelining Huawei which has remained a 4G supplier for the large mobile carrier. Anyhow the process of retaliation came weeks after the U.S. Commerce Department enlisted Huawei and 68 affiliates in an entity list over national security concerns.
From now on, the American companies would need approval from the Government before conducting business with any of the Chinese company. However, a 90 days reprieve has been granted to allow companies such as Google to offer critical support to Huawei. After the US Huawei ban, several other companies have stopped doing business including Google, Intel, and Qualcomm.
Huawei executives said in the recent weeks, the ban on Huawei in the US will damage its reputation globally and cast a bad impact on its business sales. Over the weekend, China will increase tariffs $60 billion on the U.S. goods in response to U.S. duties on $200 billion in Chinese products earlier this month. The two nations also show a few signs of ending this dispute and perhaps will come to an arrangement.
Meanwhile, Huawei has filed a petition to challenge the US ban on its equipment by calling it unconstitutional.