China ready to retaliate against Apple after U.S. moves to ban chip shipments to Huawei
China is readying financial countermeasures against U.S. companies like Apple and Qualcomm after the US government executed the process to block Huawei's global semiconductor supply.
China is ready to place U.S. companies on an "unreliable entity list" after the U.S. government moved to block chip shipments to Huawei.
On Friday, the Trump administration said it would amend an export rule to block shipments of semiconductors that are the "direct product of certain U.S. software and technology," Reuters reported.
In response, the Chinese government reacted swiftly. It's preparing a series of countermeasures, including putting U.S.-based companies on an "unreliable entity list," imposing restrictions on companies like Apple, and launching investigations, the Global Times reported.
"China will take forceful countermeasures to protect its own legitimate rights," a source told the Global Times, a subsidiary newspaper of China's Communist Party.
Beijing appears to be specifically targeting U.S. companies that are highly dependent on the Chinese market, including Apple, Qualcomm, Cisco and Boeing.
Huawei is at the center of a broad struggle for technological dominance between the U.S. and China.
In May 2019, the U.S. government imposed a ban on Huawei that barred it from acquiring American technology. It also banned U.S. telecom firms from using Huawei-produced equipment.
That ban inspired a "Boycott Apple" movement in China, with some companies in the country threatening to fire employees who used the company's products instead of Chinese ones.
Despite the ban, Huawei has continued to use U.S. software and technology, the Commerce Department said, hence Friday's move to amend an export rule.
The U.S. is also attempting to convince its allies not to use Huawei infrastructure in the global rollout of 5G, citing concerns that the Chinese company's products could be used for espionage. Huawei denies those claims.
China is ready to place U.S. companies on an "unreliable entity list" after the U.S. government moved to block chip shipments to Huawei.
On Friday, the Trump administration said it would amend an export rule to block shipments of semiconductors that are the "direct product of certain U.S. software and technology," Reuters reported.
In response, the Chinese government reacted swiftly. It's preparing a series of countermeasures, including putting U.S.-based companies on an "unreliable entity list," imposing restrictions on companies like Apple, and launching investigations, the Global Times reported.
"China will take forceful countermeasures to protect its own legitimate rights," a source told the Global Times, a subsidiary newspaper of China's Communist Party.
Beijing appears to be specifically targeting U.S. companies that are highly dependent on the Chinese market, including Apple, Qualcomm, Cisco and Boeing.
Huawei is at the center of a broad struggle for technological dominance between the U.S. and China.
In May 2019, the U.S. government imposed a ban on Huawei that barred it from acquiring American technology. It also banned U.S. telecom firms from using Huawei-produced equipment.
That ban inspired a "Boycott Apple" movement in China, with some companies in the country threatening to fire employees who used the company's products instead of Chinese ones.
Despite the ban, Huawei has continued to use U.S. software and technology, the Commerce Department said, hence Friday's move to amend an export rule.
The U.S. is also attempting to convince its allies not to use Huawei infrastructure in the global rollout of 5G, citing concerns that the Chinese company's products could be used for espionage. Huawei denies those claims.
Comments
If this becomes a public issue, the US public will stand up for the US, and the country will not cave.
If left to backroom politics, the story may be very different.
Sure the State is going to order Huaweis and can push back against Boeing and do nothing to help Qualcomm collect its licensing revenue from Chinese firms, but it's not really incentivized to kill the manufacturing of, or domestic sales of, most of the higher-end phones sold globally and across China. The suggestion of "investigating" Apple among "companies that block or shut supply chains, or take discriminatory measures for non-commercial reasons" doesn't seem like it would get very far.
There will be pain.