China warns tech giants after US Huawei ban: report

542

WASHINGTON, June 9, 2019 (BSS/AFP) – The Chinese government convened top
tech companies this week and warned them of consequences if they cut off
technology sales to the country, US media reported on Saturday.

The meeting followed US President Donald Trump’s move last month to
blacklist Chinese tech giant Huawei over national security concerns,
threatening the firm’s global ambitions and ramping up the months-long trade
battle between the two countries.

Earlier this week, the Chinese government summoned executives from American
firms Dell and Microsoft and South Korea’s Samsung, among others, to warn
them that any moves to ramp down their businesses in China may lead to
retaliation, The New York Times reported.

American companies were told “that the Trump administration’s move to cut
off Chinese companies from American technology had disrupted the global
supply chain, adding that companies that followed the policy could face
permanent consequences,” the newspaper reported.

Companies based outside the United States were told that as long as they
maintained business as usual, they wouldn’t be punished, the newspaper
reported.

Last Friday, Facebook announced it would cut Huwaei off from its popular
social networking app to comply with the US sanctions, further isolating the
company that has become the world’s second-largest smartphone vendor.

Google made a similar announcement in May.

Washington and Beijing resumed their trade battle last month when
negotiations in the US ended without a deal and US President Donald Trump
raised tariffs on $200 billion in Chinese goods.

Beijing retaliated with its own tariff hike on billions of dollars worth of
US goods.

The US move to cut Huawei off from American hardware came next, but was
delayed by 90 days to prevent economic disruptions.

image_printPrint