China is reportedly considering retaliating against Apple and Qualcomm following U.S. move to cut off Huawei's chip supply

Huawei Logo
Huawei Logo (Image credit: Android Central)

What you need to know

  • China is mulling over retaliatory measures against the U.S., following its move to cut off Huawei's access to crucial semiconductor suppliers.
  • Reports suggest it's considering launching investigations against U.S. companies.
  • Apple, Boeing, Cisco, and Qualcomm have all been named as potential targets.

The trade war between the U.S. and China may be slated to become far more damaging soon. Following the announcement of new rules by the Trump administration that effectively prevent non-U.S. chipmakers — like Taiwan-based TSMC — from supplying Huawei, China is considering retaliatory measures against U.S. companies in response.

The Global Times reports that the Chinese government is considering a range of legal measures targeting U.S. companies, including launching investigations into them or otherwise restricting their ability to operate in the country.

The report specifically lists the possibility of using laws like the Cybersecurity Review Measures and Anti-monopoly Law to target Apple, Cisco, and Qualcomm. At the same time, the country may also choose to stop purchasing Boeing planes for the foreseeable future to put the hurt on U.S. companies.

"China will launch rounds of endless investigations on those firms, just like swords hanging over their head. It will dampen investors' confidence and squeeze their income in the Chinese market," said one anonymous insider cited in the report.

And in a move similar to the one that started the whole Huawei saga, the Chinese government is also considering the use of an 'unreliable entity list' to target U.S. companies.

The unreliable entity list will include foreign organizations, individuals and companies that block or shut supply chains, or take discriminatory measures for non-commercial reasons, whose actions endanger the business of Chinese companies as well as global consumers and companies, according to MOFCOM, noting that once a company is listed, it will face necessary legal and administrative measures and the Chinese public will also be warned against it to reduce risks.

Alongside those mentioned above, the Chinese government may also choose to target smaller firms, which would be far less capable of weathering such measures as a "first-level warning," said Gao Lingyun, one of the experts cited in the report.

Huawei faces new hurdle as TSMC cuts off chip orders

Muhammad Jarir Kanji
  • Good. This was all inevitable, so let's just yank that Band-Aid off.
  • Apple always wins; that company can do no wrong. I can't help but wonder how many Chinese have invested stock in Apple?
  • Ha I'm sure they stole enough IP they will just make clones of those products anyway. 
  • China has the power to shut down so many tech companies it isn't even funny. They aren't just a source of cheap manufacturing, they have control over a significant percentage of the Earth's rare metals required to manufacture electronics.
  • 👆what he said. Let's get the popcorn ready.
  • IIRC, China only has control because they are willing to forgo all the expensive environmental regulations that go with mining these metals and therefore able to undercut the market significantly. Not because China is a source for all these metals. These aren't called rare metals because they are scarce. They are quite plentiful around the world.
  • Yup. California used to be the world leader, until the US decided China tearing its dirt up to get them, for cheaper, was better; but we have plenty, especially in AK.
  • I remember seeing that episode on 60 minutes the U S created the technology for rare earth minerals and then sold it off (no vision). That shows how short sighted the U S was for allowing that along with other companies to be acquired that allowed China to grow and get stronger. All these mistakes like allowing manufacturering to go to China has really come back to bite the U S and other countries in the ass in huge costly security ways just for all these stupid big businesses to make things cheaper for more profits.
  • It is a symbiotic relationship. One cannot survive without each other. That companies are looking to produce goods outside of China is interesting. America F'd up by not producing and manufacturing goods here long ago. The trade imbalance has been unfavourable and unfair for years. Nobody has had any balls to say so for years.
  • Are you willing to pay $5000 for your smartphone?
  • Well, you pulled that price out of your butt, but a. Yes, I'd be willing to pay more to support domestic industry, and b. There are other rising economies which would offer savings and quality. Phones made in Vietnam and India are prime examples. Apple having all its eggs in China was just stupid.
  • As you said just stupid and greedy of Apple.
  • Sounds good feel for them and I'm going to show my support ordering the p40 Pro at the end of the month. Don't use much Google stuff so won't really miss it.
  • Well **** is about to real now.
  • Good, i hope they go thru with it.
    Enough of the US bullying.
    And ultimately i hope for an amicable end to this so that the world can get on