China Fires Back With Its Own Tech Blacklist Following Huawei Ban
In response to the US' trade ban of Huawei Technologies, China had reportedly set up a meeting with global tech companies last week to discuss the matter. According to a report published over the weekend, which cited sources that attended the talks, China had apparently requested major tech companies not to comply with the United States' ban.
Chinese officials reportedly noted that complying with the US' ban on Huawei would only exacerbate the ongoing trade tensions between both countries. China also stated that it would be releasing its own list, which will include "unreliable" foreign companies.
Those that would be included in the list would apparently no longer be able to trade with the country or get access to its abundant resources. China also hinted that it will be cutting the supply of rare earths to US companies who complied with the US ban.
Among those that attended the meeting was US software giant Microsoft Corp. According to an unnamed representative who had attended the meeting, China made it abundantly clear that complying with the US ban would lead to severe complications within the tech sector.
The Microsoft representative reiterated that China wasn't issuing a direct warning, but was instead issuing a statement of fact on what could potentially happen if major participants in the sector were to comply with the US' demands.
Chinese officials also reportedly pleaded with the companies not to make any rash decisions, at least not until the situation has fully been understood. The meeting was reportedly headed by the National Development and Reform Commission (NDRC) and was attended by representatives from companies such as Microsoft, Dell, ARM, SK Hynix, and Samsung Electronics.
The meeting itself was nothing unusual for the country, who is known to call on representatives of foreign companies when it wants to announce something important. The country likely sees the current situation as an opportune time to talk to global players and to figure out the next steps to take to avoid further escalation.
The US' trade ban on Huawei has caused quite a stir within the global tech sector, with repercussions seen throughout the global markets. The NDRC had stated that refusing to do business with Chinese firms could lead to dire consequences that would likely plunge the entire sector further downwards.
According to another representative who refused to reveal his or her identity and the identity of his or her company, Chinese officials apparently didn't even mention Huawei during the discussions. Officials also did not issue any ultimatums and simply asked the companies to continue doing business with China in order to contribute to a win-win situation for everyone involved.