Yesterday, the US government extended its trade sanctions against Huawei and its subsidiaries for one more year after Donald Trump re-signed the Executive Order. In response, it is being reported that China is ready to retaliate against Apple, Qualcomm, and other US-based firms.
Reports coming out of China indicated that the Chinese government is ready to take serious action against US-based firms, including Apple and Qualcomm, as the US government is trying to block shipments of semiconductor chips to Huawei and its subsidiaries. If the US forces Taiwanese semiconductor firm TSMC to stop making chipsets for Huawei, the Chinese smartphone giant won’t be able to sell any device anywhere in the world.
Apparently, China is looking to put US companies on an “unreliable entity list,” and put pressure on them by launching investigations and imposing restrictions against doing business in China and with Chinese firms. According to the report from Global Times, Cisco and Boeing would also be on the Chinese list.
Sources close to the matter have reportedly mentioned that China is being forced to take “forceful countermeasures to protect its own legitimate rights,” if the US moves ahead with the plan to bar essential chip companies like TSMC to do business with Huawei and other Chinese firms.
The Chinese government could launch investigations against Apple, Boeing, Cisco, and Qualcomm through local laws such as Cybersecurity Review Measures and the Anti-Monopoly Law. It could also ban Chinese airlines from buying airplanes from Boeing. All the US companies mentioned here are highly dependent on the Chinese market and Chinese partners for their businesses.
Apple sells a lot of smartphones and other devices in China, and a ban on the company to sell its products in China could be a huge blow.
Moreover, a lot of Apple products get manufactured and assembled in China, and a ban on the Cupertino-based tech giant from doing business with Chinese firms could disrupt the whole supply chain, thereby affecting its sales across the world.
What do you think about Donald Trump’s Executive Order and adding Huawei to the entity list?[Source: Global Times]