China urges US to stop unreasonable suppression of Huawei

epa08406740 A woman waves outside a Huawei mobile phone store in Beijing, China, 07 May 2020. Countries around the? world are taking increased measures to stem the widespread of the SARS-CoV-2 coronavirus which causes the Covid-19 disease. EPA-EFE/WU HONG

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Beijing has urged the United States to stop the “unreasonable suppression of Huawei and Chinese enterprises” after Washington announced new export controls to restrict the tech giant’s access to semiconductor technology.

The latest restrictions on the world’s second-largest smartphone manufacturer, which is at the centre of US spying allegations, are a new escalation in the US-China battle for global technological dominance.

China will firmly defend its companies’ legal rights, the foreign ministry said in a statement in response to Reuters’ questions on whether Beijing would take retaliatory measures against the United States.

China’s Global Times newspaper on Saturday quoted a source close to the Chinese government as saying that Beijing was ready to take a series of countermeasures against the United States, such as putting U.S. companies on an “unreliable entity list” and imposing restrictions on U.S. companies such as Apple Inc , Cisco Systems Inc and Qualcomm Inc.

The newspaper, published by the People’s Daily, the official newspaper of China’s ruling Communist Party, said the source also mentioned halting the purchase of Boeing Co airplanes.

“China will take forceful countermeasures to protect its own legitimate rights” if the United States moves forward with the plan to change rules and bar essential suppliers of chips, including Taiwan-based TSMC, from selling chips to Huawei, the Global Times quoted the source as saying.

Tensions between the world’s two largest economies have spiked in recent weeks, with officials on both sides suggesting a hard-won deal that defused a bitter 18-month trade war could be abandoned months after it was signed in January.

In addition to the move on Huawei, the U.S. Federal Retirement Thrift Investment Board, which oversees billions in federal retirement dollars, this week also said it would indefinitely delay plans to invest in some Chinese companies that are under scrutiny in Washington.

Reuters 

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