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U S - CHINA: Battle of the blacklists

SupChina.com

In an obvious act of retaliation against the United States government’s impending ban on technology exports to Chinese telecom giant Huawei, Xinhua reports:

China will establish a list of unreliable entities based on relevant laws and regulations, according to the Ministry of Commerce (MOC) Friday.

Foreign enterprises, organizations and individuals that do not comply with market rules, violate contracts, block or cut supplies to Chinese firms with non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be added to the list of unreliable entities, said Gao Feng, a spokesperson with the MOC.

Detailed measures will be announced soon, Gao said.


A Ministry of Commerce Q&A about the “unreliable entity list,” or 不可靠实体清单 bùkěkào shítǐ qīngdān, is here (in Chinese). More reporting on the new Chinese blacklist:

China threatens to blacklist foreign companies / FT (paywall)

The Chinese Communist party’s tabloid the Global Times said US tech groups Google and Microsoft and the UK-based chip designer Arm are at risk of being included on the entity list.


China to set up ‘unreliable entity’ list after U.S. Huawei ban / Bloomberg (porous paywall)

The vague wording of the Chinese state media report opens the door for Beijing to target a broad swathe of the global tech industry — from U.S. giants like Alphabet Inc.’s Google, Qualcomm Inc. and Intel Corp. to even non-American suppliers that have cut off China’s largest technology company. Those run the gamut from Japan’s Toshiba to Britain’s Arm…

“This retaliation with Chinese characteristics is unlikely to sway the Trump Administration,’’ said Jude Blanchette, China practice lead at Crumpton Group in Arlington, Virginia, and a former Conference Board researcher in Beijing. “The only certain outcome of this hastily-created ‘entity list’ is to further convince foreign firms that the political and regulatory risk of operating in China continues to rise.”


As with every other day this week, a couple of paragraphs can convey only a fraction of the important recent news related to Huawei, and the trade and tech divisions between China and the U.S. that continue to rapidly deepen. Subscribe to SupChina Access to get the full story every weekday.

—Lucas Niewenhuis

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