China Preparing Its Own ‘Blacklist’ Of Foreign Firms, Escalating Trade War

China is apparently escalating the its trade war with the United States with its Commerce Ministry declaring that it is preparing a list of foreign companies, individuals and organization that it feel are “unreliable”.

This move by the Chinese authorities was preceded by the decision of the US Commerce Department to blacklist Chinese telecom making company Huawei and put it on its so called ‘entity list’ that contains foreign companies and entities that the US administration deems to be a threat to national security. That enlistment of Huawei essentially cut off the Chinese company’s access from the American market and prevented any US companies to deal with Huawei in terms of products or technologies. The US later however provided partial relief to Huawei for a period of 90 days.

Following the inclusion of Huawei in the blacklist, a number of American companies announced their decision of cutting off business ties with the Chinese company. On the other hand, foreign companies are also contemplating whether the US order also has any implication =s on them with respect to their business relationship with Huawei.

The Chinese state-owned newspaper Global Times quoted Chinese commerce ministry spokesman Gao Feng sating that the list of “unreliable entities” being prepared by China would be applicable to those that violate the established market rules and the spirit of contracts, prevent supplies to Chinese firms for reasons other than commercial and “seriously harm the legitimate rights and interests” of Chinese companies.

“Foreign enterprises, organisations 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’,” said Gao according to the report in Global Times. China would announce details of the measures for the blacklist in the near future.

It has been reported that a number of video surveillance companies of China are also being considered by the United States Commerce Department for being added to its ‘entity list’.

This announcement by the Chinese commerce ministry of its list assumes further importance because China is set to increase import tariffs on US goods worth US$60 billion in a day as its measure for retaliating to the increase of US tariffs on Chinese goods worth US$200 billion from 10 per cent to 25 per cent earlier in May by the US president Donald Trump.

(Adapted from ChannelNerwsAsia.com)



Categories: Creativity, Economy & Finance, Geopolitics, Regulations & Legal, Strategy, Sustainability

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