us china trade war

China threatens to create a list of “unreliable entities”

Remember that just a few hours I said that the ban on Huawei may be coming to an end? Well, I take that back. Multiple sources report that China wants to create a list of “unreliable entities”. This is clearly a counter-action on the US Ban imposed on Huawei. So far it is unknown what companies will be on that list or how it will affect trade and manufacturing contracts. So far it did not explicitly say that this is a list of US companies, but the resemblance and timing can’t be denied.

Gao Feng, a spokesman of China’s commerce ministry said that the list will include “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”. When this list will be ready is another mystery. I assume that the Chinese are using it as a negotiation tactic in the trade war with the US.

Even if this is just an attempt to scare president Donald Trump and force him to withdraw the ban on Huawei, the implications may be huge. First, it contractions Huawei’s founder who said that China will not respond to the U.S. Entity List with a similar approach. Second, if Donald Trump will not budge, China may be forced to actually create and use such a ban-list itself, an action that will have big commercial disruptions all around the world, not just US and China.

Sources: AndroidAuthority, Techcrunch, Engadget

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