China to create company blacklist as US trade war escalates

Team Udayavani, May 31, 2019, 7:07 PM IST

Beijing: China on Friday said it would release a blacklist of “unreliable” foreign companies and individuals, hitting back after the United States targeted telecom giant Huawei in their escalating trade war.

The announcement was made a day before Beijing is due to increase tariffs on USD 60 billion in US goods, capping a week marked by rising Chinese threats of retaliation after President Donald Trump blacklisted Huawei.

The US Commerce Department placed Huawei on an “entity list” on grounds of national security on May 16, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued.

China’s commerce ministry announced on Friday that it will release its own list of “unreliable entities”.

Ministry spokesman Gao Feng said the list will include “foreign enterprises, organisations or individuals that do not comply with market rules, deviate from a contract’s spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises”.

The detailed measures against firms on the list will be released shortly, Gao said.

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