On Saturday, the Chinese foreign ministry said that the US needs to stop the “unreasonable suppression” of China companies – one of which of course is Huawei. A Chinese newspaper went as far as suggesting that if such oppression is continued, then the government will indeed be ready to retaliate against Trump’s administration.
On Friday, Washington moved ahead with its plan to block global chip supplies to the blacklisted telecoms equipment company in Huawei Technologies. Of course such a decision was met with great fears that the Chinese government would soon be looking to retaliate with regards to the decision, while there is also now a growing expectation that all such US producers of chip-making equipment will see their shares plummet as a result of loss in business.
In response to the question posed of whether or not China will be taking action against the latest US decision, the foreign ministry did in fact claim in a statement that China will firmly defend its companies’ legal rights.
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It was said then by China’s Global Times newspaper on Saturday that the Chinese government is ready to take a series of countermeasures against the US – one of which may include putting certain companies from the country on an “unreliable entity list.” Moreover, it is said that if such a decision is indeed taken, then companies such as Apple Inc, Cisco Systems Inc, and Qualcomm Inc may be on the receiving end of the consequences.
There is no doubt in the fact that in recent times, the two largest economies of the World in the US and China have not been getting along. Indeed just as the deal which defused a bitter 18 month trade war was signed, officials from both sides are suggesting that it could soon be abandoned.
Moreover, to further prove the point that tensions are indeed on the rise between the two countries, the US Federal Retirement Thrift Investment Board also said this week that it may indefinitely delay any plans that were in places to invest in some Chinese companies which happen to be placed under scrutiny in Washington.
