China warned its ‘unreliable entities’ list risks undermining foreign business confidence
- Sources say plan has generated concern about a lack of transparency and possible abuse of blacklist
- Measure to target organisations and individuals that pose a threat to Chinese firms or security was announced following US sanctions against Huawei
China needs to walk a fine line when compiling its list of “unreliable entities” or risk undermining foreign companies’ confidence about operating in the country, diplomatic and business sources have warned.
Two weeks ago Beijing announced plans to create a list of foreign companies, organisations and individuals that posed a national security risk or had damaged the interests of Chinese businesses by blocking or cutting supplies for non-commercial purposes.
The move was in response to an America decision to blacklist the Chinese tech giant Huawei.
On Thursday the Chinese Ministry of Commerce said it would publish the list soon and set out detailed measures once the necessary procedures were completed.
Chinese officials have tried to reassure businesses that the country still welcomes foreign investment, but the measure has prompted concern about a lack of transparency and possible abuses.
