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China starts working on its own blacklist in response to the Huawei ban

Huawei Logo
Huawei Logo (Image credit: Android Central)

What you need to know

  • China is planning on blacklisting foreign companies that have been deemed "unreliable."
  • It could include companies from the U.S. as well as Japan or Britain.
  • China could also restrict rare earth exports to the U.S. in the future.

Tensions are rising in the trade war as China threatens to create its own blacklist. The list would contain foreign companies or organizations which China has deemed unreliable.

China will set up a mechanism listing foreign enterprises, organizations and individuals that don't obey market rules, violate contracts and block, cut off supply for non-commercial reasons or severely damage the legitimate interests of Chinese companies.

It is clear this is a direct response to the recent U.S. ban on Huawei which has caused many U.S. and foreign companies to cut ties with the Chinese mobile giant. The ban has resulted in Huawei losing direct access to Android, as well as access to patents from ARM that are used to make its Kirin processor.

While Huawei has its own operating system in the works set to launch in China in late 2019, getting around the hardware regulations will be a tougher cookie to crack.

As the trade war continues to heat up between the two countries, it was only a matter of time before China found a way to retaliate.

It's expected that China will not only target U.S. companies but also other foreign companies who have been dragged into this dispute. For example, Japanese companies Toshiba and Panasonic or Britain's ARM who have both been forced to shun Huawei after the U.S. ban was handed down.

A Ministry of Commerce spokesman for China, Gao Feng said that China is setting up the list:

to protect international economic and trade rules and the multilateral trading system, to oppose unilateralism and trade protectionism, and to safeguard China's national security, social and public interests

Another measure China has considered is restricting exports of rare earth minerals to the U.S. That's a big deal because these minerals are used in high-tech electronics, automobiles, and even for defense. The minerals aren't called rare for nothing, and China is the largest supplier with around 35% of the world's reserves and responsible for 70% of the mining done in 2018.

Trump has said in the past that Huawei could be part of a trade deal between the two countries. However, until the U.S. and China can come to a trade agreement, the two will continue to battle it out with tariffs and blacklisting companies. The U.S. still has the potential to add new companies to the entities list such as Zhejiang Dahua Technology Co. and Hangzhou Hikvision Digital Technology Co.

Chinese President Xi Jinping and Trump will next meet at the G-20 Summit at the end of June. Whether or not this next meeting leads to a trade deal is still up in the air, with Trump saying he's in no hurry to make a deal.

Losing Google support would irreparably damage Huawei's global smartphone business

24 Comments
  • I wished China would prohibit its people from visiting the US. Please do it, China!!
  • agreed we don't need those walking disasters!
  • Xenophobia is bad for your health
  • What kind of xenophobic idiot would waste their energy wishing that Chinese people lose even more freedom? Get some perspective, and maybe even a shred of empathy. And get better at wishing, if you have one wish, you wish for infinite wishes. Everyone over the age of six knows that.
  • Something else to consider, those horrible Chinese visiting the US they're worried about are more than likely tourists or business people, who spend money here. Why eliminate a revenue source?
  • Time to stop Apple products from spying on China, ban them all and stop producing them.
  • No surprise China would answer back. I'm assuming when Trump decided to ban U.S companies supplying components to Huawei that their advisors and experts advised him on what they anticipated that China could retaliate back with and how to prepare for that
  • And he moved forward anyways.
  • I knew this was coming but Japan and Brittain now!?
  • It makes sense. Several Japanese and British companies have joined in with the bans. ARM, for example. Who are kind of both.
  • Isn't globalism great?
  • Going back to being isolationist isn't the answer. For one, many of the materials used in our products aren't available in the US. And in terms of technology, we're still behind Asia. Look at their displays and storage for evidence of that. Shifting away from technology, what happens if another country comes up with a cure for a currently incurable disease? Would we not want them to share it? Or should we keep inside our own borders and let more of our own people die until/if we come up with a solution? Look at history for how being isolationist can harm countries. The US retreated to our own borders for the most part after WWI, and we got Pearl Harbor. After WWII, we decided it was better to work with other like minded countries to protect each other and try to prevent further global wars. If everyone remained isolationists, and a rogue/militant country gets nuclear or bioweapons, who's going to handle that threat? The country closest to their borders? The wealthiest country? When problem solving, more minds are generally better. Sometimes they'll butt heads, but for the most part more minds means more ways of looking at a given problem and in turn more possible solutions. Have you ever been trying to solve a problem and someone else says something that gives you an idea? I'm not saying globalism doesn't have risks, but it also has rewards as well.
  • Constitutionally speaking we shouldn't be handling rogues or anything else that don't attack us first. We should be fairly trading with everyone.
  • So we should wait until people die rather than try to prevent it from happening?
  • Well, exactly: people should quit b*tching just because we're butting heads in search of better solutions.
  • Those better solutions are to become an isolationist nation? You referred to globalism sarcastically, so I'm assuming that's what you meant. But by isolating ourselves, it's probable that we'll fall behind more than we already have. When you look at the advancements in science, healthcare, and technology, they're not solely in the US, in fact I'd say the opposite is true. Most of the stories about advancements in the 3 industries I mentioned are usually in countries outside the US. If we isolate ourselves from other countries, we may find ourselves left behind. But we'll be the ones doing that to ourselves at least, not some other country, right? And that's what matters.
  • I understand your concept and agree, but Pearl Harbor did not happen because of isolationism. Quite the opposite.
  • Yes and no. We were sanctioning Japan because of their expansion into China, but we were doing it for the most part by ourselves. The US stayed out of what was going on in Europe and the multinational organization of the time, the League of Nations, was essentially more about rhetoric and less about taking action vs what we had later in the UN (although now the UN is pretty much back to rhetoric). We thought we were ok because we thought we would see Japan coming.
  • China already has this. Google and many other companies cannot offer their services in China.
  • They can offer their products and services if they follow local laws. Google refuses to follow local laws, therefore some products are not available there. Apple caved and follows local laws, they are free to do business over there.
    Imagine a Chinese company trying to do business in USA without following local USA laws. Would you complain about it? Would you say USA is banning that company?
  • China pretty much already bans most Western companies and exports that aren't essential. They are incredibly protectionist already which is why the trade imbalance is so extreme. To paraphrase Pokemon, China's attack will not be very effective.
  • Just go straight for the jugular and block the rare earth minerals.
  • As they've already done in the past? "In 2010, partly to demonstrate its dominance in the global market for rare earth elements, China began stockpiling its dysprosium, raising tariffs and reducing exports — moves that left the U.S. defense and energy sectors in a bind." That's why Alaska is the next frontier in REEs. We just need to quit pretending it's more valuable as scenery, and stop listening to whiny natives...like China does.
  • China could, but they also know such a move would have massive blowback as major players like the EU would instantly get behind the US, plus the WTO would drop the hammer on China.