China would be ready to respond to the measures imposed against Huawei by the United States. According to Global Times, Xi Jinping’s administration will add Apple, Boeing and others to a blacklist. The decision comes after the United States announced its intentions to block the sale of chips to Huawei.
A source close to the Chinese government said strong countermeasures would be applied to protect his legitimate rights. If confirmed, this would affect U.S. companies that would be investigated under Chinese laws and regulations.
China’s Ministry of Commerce had already announced a list of untrustworthy entities (Entity List) in the middle of last year. While the names or progress of this decision were not made public, it is now said to include Apple, Qualcomm, Boeing and Cisco. The measures range from cyber security review and antitrust issues to a buyout suspension in the case of Boeing.
Faced with the veto imposed by the United States in 2019, Huawei declared in March that “the Chinese government would not stand idly by and watch them being massacred. During a press conference where they announced their annual revenues, Eric Xu, Huawei’s chairman of the board, expressed his discontent.
Huawei is the main victim of the trade war that Donald Trump started against China in early 2019. The U.S. president imposed a restriction on American companies to do business with Huawei. This caused the technology’s mobile phones to be unable to include Google’s services, and as a result, sales fell outside China.
The Asian company has tried to circumvent the restrictions by launching updated versions of the latest models that were released with Google’s software. The problem for Huawei is that in the midst of the global crisis over the coronavirus pandemic, the U.S. seems to be unwilling to give in on its intentions and seeks to extend the veto.
After signing an executive order that will prevent Huawei and ZTE from operating in the United States for a year, they are now seeking to force chip manufacturers to avoid a direct supply. The U.S. Department of Commerce announced new rules “to specifically and strategically direct Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.
If the Chinese government’s decision is confirmed, foreign companies that do not comply with market rules will be subject to sanctions and investigations similar to those faced by Huawei.