In the context of the US blockade of Huawei, the Chinese government has stated that it will establish a list of "unreliable" foreign companies, which could act to the detriment of the interests of domestic companies. it's a new measure that could further deteriorate relations between the two countries.
According to our source, Economy Minister Gao Feng has stated that China will establish a mechanism that will serve to draw up a list of foreign companies, organizations and individuals whose behavior ignores market regulations, disrupts the supply of materials for non-commercial reasons, or significantly harms the interests of Chinese companies.
In case you are not aware of the current situation: recently, the U.S. government decided to restrict Huawei's freedom to sell devices in the U.S., as well as to buy components from U.S. companies, thus harming one of the most successful Chinese companies today. The measure has deepened the rift between the two countries, which was already significant.
Now, the Chinese government's statements open up the possibility of targeting important players in the technology industry: more precisely companies such as Alphabet, Qualcomm and Intel, as well as non-US companies such as the Japanese manufacturer Toshiba. As a result of the news, the shares of Apple, Qualcomm and Intel have fallen more than one percent in pre-market trade.
Michelle Lam, an economist at Société Générale SA in Hong Kong, said: "Companies that have confirmed a cut in supplies for Huawei, such as Panasonic and Toshiba, will surely be on the list." In addition, he assures that the measure "could cause a lot of damage to the multinationals".
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