Govt· Policy

China to create its own list of “unreliable entities”

minutes 2019/06/03 06:33:51
Ministry of Commerce; unreliable entity list

Jun 03, 2019 (China Knowledge) - China plans to place foreign companies in considers to have damage the interests of its own companies in an “unreliable entity” list, according to the Ministry of Commerce.

The move comes in response to the US Department of Commerce putting Huawei Technologies on its “entity list” which effectively bans US companies from selling to the Chinese telecoms company. Following the ban, US tech companies such as Google and Qualcomm have already started halting supplies of critical components and services to Huawei.

Huawei currently relies heavily on foreign suppliers in key areas such as chipmaking to base stations, importing 30% of its components from US firms. The US’s far ranging ban now threatens the company’s very own survival.

China’s own “unreliable entity” list will include organizations and individuals deemed to have blockaded or cut off Chinese companies from suppliers for non-commercial reasons.

Earlier last month, when US President Trump signed the executive order banning Huawei from accessing US suppliers, China’s Foreign Ministry had accused the US of abusing its power to crack down on Chinese companies, calling such measures “disgraceful and unjust”.

The latest move from China highlights a fast escalating trade war between the two countries following a tariff hike on USD 200 billion worth of Chinese goods to 25% from 10% earlier in May, with Beijing responding in kind by raising levies on USD 60 billion worth of American goods.

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