Beyond tariffs: China looks for new ways to hit back in US tech and trade war
- Ministry of Commerce says it is drafting a list of ‘unreliable foreign entities’ following Washington’s decision to blacklist 70 Chinese companies
Outgunned on tariffs, China will find alternative ways to hit back in its trade and tech wars with the United States, putting American firms in China at high risk of being caught in the crossfire, observers said.
On Saturday, Beijing’s higher tariffs on roughly US$60 billion of US products took effect, a move made in response to Washington’s decision to increase duties on US$200 billion of imports from China.
In addition, China’s Ministry of Commerce said on Friday that it was working on an “unreliable entity list” of foreign entities and individuals deemed to have damaged Chinese firms, a “doing by learning” move in response to the US’ decision to blacklist 70 Chinese companies, including telecom giant Huawei.
The ministry said it would detail the action soon, identifying violators of market rules and contractual obligations. It would also specify parties that had taken “discriminatory measures” such as boycotts to harm Chinese business rights and interests, or posed threats to national security.
Wang Hejun, a senior ministry official, said the list could be changed over time and those named would have the right to defend themselves.