Chinese government officials have warned many companies in the sector of "disastrous consequences" if they cooperate with a ban imposed by the United States not to do business with the Chinese group Huawei. According to a report in The New York Times. The move comes after China has threatened to establish a blacklist "unreliable entities" in retaliation for the ban.
The Time reports that members of the National Commission for Development and Reform of China, as well as members of the Ministry of Commerce and Ministry of Industry and Information Technology, have held these warnings more early this week in front of a "wide range of exporting companies in China", according to two people familiar with the discussions. It is unclear which companies were present at the meetings, apart from the fact that they included a number of some of the world's largest semiconductor companies, as well as other technology giants. "
Officials warned US companies against relocating their production lines in other countries, against injunctions to not do business with some companies, and against the fact that they should put pressure on efforts of the Trump administration, believing that their actions could have permanent consequences. Non-US companies would have been exposed to such consequences if they continued to supply Chinese companies. But the Time notes that US companies are likely to be effective, as they will not create legal problems to break the law.
In May, the White House issued a decree This allows the federal government to ban US companies from buying equipment to companies considered to pose a risk to national security.
The order is aimed directly at Huawei, for whom national security officials have warned of such a threat to US security, and who have put pressure on the allied countries to use the company's equipment to modernize their telecommunications infrastructure. The order prompted high-tech companies to Google, Microsoft, ARMand others to stop selling supplies to Huawei.
This move comes against a backdrop of increasing tensions between Washington and Beijing, with both countries raising tariffs as part of the ongoing trade war. Talks have come to a halt recently, although President Donald Trump and Chinese President Xi Jingping are expected to meet later this month at the G20 summit in Japan.