The trade war is about to get ugly
China has announced that it is making its own “non-reliable entity list” in direct response to the US government’s trade ban on Huawei.
The unreliable entity list as the commerce ministry spokesman Gao Feng is calling it, will include “foreign companies, individuals and organizations 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.”
The language of the list seems to suggest that a majority of the companies that blocked sales and transfer of technology to Huawei as part of the US blacklist will be added to China’s own blacklist as a retaliatory measure.
Huawei was earlier put on an entity list by the US government over national security fears, essentially cutting off their access to technology and hardware developed in the US. Critical suppliers like ARM Holdings, Google, Qualcomm, Intel, and Broadcom have publicly cut ties with the company, at least for the time being.