Beijing announced its intention to create a blacklist of foreign companies that are considered to threaten their national security or act against Chinese business interests. The blacklist, appeared to be a retaliatory measure for the Trump administration's decision to ban Chinese apps TikTok and WeChat from US app stores on Sunday.
Tensions between Beijing and Washington have escalated in recent months, accelerating a downward spiral in economic and diplomatic relations. The standoff now encompasses both countries' trade and technology policies, as well as Taiwan, Hong Kong, human rights and other issues.
Many recent US actions they have prompted China to respond. The People's Liberation Army sent 19 fighter jets and bombers to the Taiwan Strait on Saturday and 18 the day before to protest against a senior department official's visit to the democratic island, which China claims to be its territory. 'Condition.
In addition to banning TikTok and WeChat, the Trump administration has prevented that dozens of Chinese companies buy American products. The Commerce Department added Chinese tech giant Huawei to its "Entity List" last year, limiting the company's ability to use US-made chips, software and other technologies.
The Ministry of Commerce of China published Saturday rules that describe a "similar list of untrusted entities", although it did not mention specific companies or individuals that would be included.
The rules, which took effect immediately, say that foreign entities on the list They could be banned from exporting or importing anything from China or investing in the country.
Businesses They could also be fined and their employees could be banned from entering or work in China. The same goes for those who already have a work permit, a residence permit or a residence permit, all these documents could be revoked. Interested companies may no longer be able to bring into the country any assets that will serve them in their activities (personnel, company vehicles, etc.).
China further indicates that the list of measures is not exhaustive; Other steps could be taken if 'necessary'
China condemns Trump administration actions against WeChat and TikTok
In a separate statement on Saturday, the Commerce Department condemned the Trump administration's actions against WeChat and TikTok, saying such action had damaged the image of the United States as a destination for foreign investment:
“The United States has prohibited transactions related to WeChat and TikTok mobile applications for reasons of 'national security', seriously undermining the legitimate rights and interests of the companies concerned and disrupting the normal order of the market. China strongly opposes it.
“Without evidence, the United States has repeatedly used national power to 'hunt down' and suppress the two companies mentioned above for unjustified reasons, severely disrupting the companies 'normal business operations and undermining international investors' confidence in the environment. American investment. Destroying the international economic and commercial order is not normal.
And does this affect us?
Sure, yes, since China is the world's largest manufacturer and dominates the global supply of a long list of products America needs, including metals for consumer electronics. But Beijing's threat to cut exports could damage China's own reputation as a reliable supplier, but could also trigger a price hike on various products.
Multinationals have made China their production base to produce goods quickly, economically and efficiently. Foreign investment in China has not only created tens of millions of jobs in the country, but has also expanded its technological knowledge.
Foreign companies have a lot to lose if China decides to add them to its new blacklist.
Apple, for example, assembles most of its products domestically. Last year, the Greater China region accounted for one sixth of the company's sales.
They have to ban microsoft ...
“Foreign companies have a lot to lose if China decides to add them to its new blacklist.”… And China will lose too by eliminating investments from those companies. China may be the biggest manufacturer of whatever it is, but if it doesn't have someone to sell it to, it's like collecting stones. Apple will assemble its products in the US, which is what Trump intends, will employ thousands of Americans, and Apple will continue to sell its products even though they may be more expensive. Something that does not usually matter to its users, by the way. The multinationals will simply change their headquarters by moving to countries such as Vietnam, Malaysia or India and could even move to Africa where production costs are usually negligible and whose governments can be "incentivized" more easily. A possible veto by the United States and its allies of Chinese companies could shake more than one Chinese.
Many forget that China has for years banned applications from the rest of the world from entering its market, being a communist regime controls everything that Chinese users consume, the United States is only responding to that.