The more that the U.S. continues to enforce bans and restrictions on Huawei, the closer we might be seeing retaliation from the Chinese government. Sources are saying that some U.S. companies like Apple, Qualcomm, Cisco, and Boeing might be put on an “unreliable entity list”, therefore restricting their businesses in China. Unfortunately, these companies are highly dependent on that market so we might see major economic repercussions on top of the current ones being experienced due to the COVID-19 pandemic.
Just last Friday, the government moved to block semiconductor shipments to Huawei and are looking to amend the export rule and the Entity list. This way they will be able to make sure that Huawei will still not be able to benefit from the “direct product of certain US software and technology”. This is just the latest in their efforts to stop both US and other global companies from doing business with the Chinese company whom they suspect of spying on US citizens for the Chinese government.
Global Times says their source shared that China will be making their own “forceful countermeasures” against U.S. companies so they can protect their own “legitimate rights”. They will do this by adding U.S. companies to their own “unreliable entity list”, imposing restrictions on companies that do business in China, and even launching investigations into some of these companies as relating to their laws and regulations.
China recently announced that their list will include foreign organizations, individuals, and companies that are blocking their supply chain and are imposing “discriminatory” measures on Chinese companies for non-commercial reasons. It will also include companies that will cause “actual and potential damage” to Chinese companies and industries. Once you’re on this list, it will mean facing legal and administrative measures.
This is just the latest in the U.S. and China’s ongoing bickering that is affecting private companies and eventually, the economy as well. Huawei has been the most prominent “victim” as the company will have to learn to live without Google and Android software on their smartphones as the U.S. shows no signs of backing off. Now that American companies will be threatened, let’s see what the next chapter will look like.