China warns tech gi­ants af­ter US Huawei ban: re­port

Daily Mirror (Sri Lanka) - - FINANCE -

WASH­ING­TON (AFP) - The Chi­nese gov­ern­ment con­vened top tech com­pa­nies this week and warned them of con­se­quences if they cut off tech­nol­ogy sales to the coun­try, US me­dia re­ported on Satur­day.

The meet­ing fol­lowed US Pres­i­dent Don­ald Trump’s move last month to black­list Chi­nese tech gi­ant Huawei over na­tional se­cu­rity con­cerns, threat­en­ing the firm’s global am­bi­tions and ramp­ing up the months-long trade bat­tle be­tween the two coun­tries.

Ear­lier this week, the Chi­nese gov­ern­ment sum­moned ex­ec­u­tives from Amer­i­can firms Dell and Mi­crosoft and South Korea’s Sam­sung, among oth­ers, to warn them that any moves to ramp down their busi­nesses in China may lead to re­tal­i­a­tion, The New York Times re­ported. Amer­i­can com­pa­nies were told “that the Trump ad­min­is­tra­tion’s move to cut off Chi­nese com­pa­nies from Amer­i­can tech­nol­ogy had dis­rupted the global sup­ply chain, adding that com­pa­nies that fol­lowed the pol­icy could face per­ma­nent con­se­quences,” the news­pa­per re­ported.

Com­pa­nies based out­side the United States were told that as long as they main­tained busi­ness as usual, they wouldn’t be pun­ished, the news­pa­per re­ported.

Last Fri­day, Face­book an­nounced it would cut Huwaei off from its pop­u­lar so­cial net­work­ing app to com­ply with the US sanc­tions, fur­ther iso­lat­ing the com­pany that has be­come the world’s sec­ond-largest smart­phone ven­dor. Google made a sim­i­lar an­nounce­ment in May. Wash­ing­ton and Bei­jing re­sumed their trade bat­tle last month when ne­go­ti­a­tions in the US ended with­out a deal and US Pres­i­dent Don­ald Trump raised tar­iffs on $200 bil­lion in Chi­nese goods.

Bei­jing re­tal­i­ated with its own tar­iff hike on bil­lions of dol­lars worth of US goods.

The US move to cut Huawei off from Amer­i­can hard­ware came next, but was de­layed by 90 days to pre­vent eco­nomic dis­rup­tions.

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