Trump's trade war with China: China responds

Tit-for-tat: Beijing to draft ‘blacklist’ of foreign companies harming interests of Chinese firms

RT,

1 June, 2019

The Commerce Ministry of China has pledged to create a list of foreign individuals, corporations and institutions that are considered “unreliable” or that violate the interests of Chinese businesses, state media reports.

The ministry is planning to disclose details of the proposed list in the near future, according to spokesman Gao Feng, as quoted on state-run China National Radio.

Till Trump do they part: Top tech firms cut ties with Huawei following US trade blacklisting

That decree bars American businesses from supplying Huawei with spare parts or technology solutions. The measure was introduced after the White House accused Chinese companies of espionage against the US on behalf of Beijing.The measure has been proposed amid the recent scandal that has erupted around the US blacklisting of Chinese telecoms major Huawei, along with other Chinese corporations, on the direct order of US President Donald Trump.

The art of trade war: Chinese firm bans workers from buying American goods & stateside travel

The radical measure has caused both American and foreign tech firms to suspend their business transactions with Huawei to comply with Trump’s order. US internet giant Google became the first and broke a product-sharing agreement with Huawei.Following the order, the US Department of Commerce announced the blacklisting of Huawei and 70 of its affiliates. This has forced American companies to seek special permission from the Bureau of Industry and Security (BIS) to trade with the Chinese firm.

Fall of empire? German businesses find China a more trustworthy partner than US or Britain

Later, several chipmakers, including Intel, Qualcomm, Xilinx and Broadcom followed suit. US-based Microsoft, British chip designer ARM and telecoms group Vodafone, as well as Japan's Panasonic, have all cut ties with Huawei.

The blacklisting of Huawei is seen as part of the ongoing trade dispute between China and the US. President Trump has accused Beijing of unfair trading practices and of intellectual property theft, having imposed first tariffs on goods imported from China. Beijing has denied the accusations and has responded with counter-tariffs on American products.

China Uses War Words; Tells 

USA "Don't Say We Didn't 

Warn You"

Hal Turner,

31 May, 2019

“We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!” the People’s Daily said in a commentary titled “United States, don’t underestimate China’s ability to strike back.” The publication is the official newspaper of the Communist Party of China. 

The phrase “Don’t say we didn’t warn you” has been used before by the People’s Daily . . . in 1962 before China’s border war with India and ahead of the 1979 China-Vietnam War.

 “Will rare earths become a counter weapon for China to hit back against the pressure the United States has put on for no reason at all? The answer is no mystery,” the paper said.

The trade conflict between the world’s two largest economies escalated quickly this month with both sides slapping tariffs on billions of dollars worth of each other’s goods. China’s threat to restrict rare earth mineral sales to the U.S. came after President Donald Trump blacklisted Chinese telecom giant Huawei, which led to many chipmakers and internet companies cutting ties with the company.

The speculation about China’s payback first surfaced when Chinese President Xi Jinping visited rare earth mining and processing facilities in Jiangxi province during a domestic tour last week. A Chinese official warned Tuesday that products made from the materials should not be used against China’s development, which was seen as a veiled threat aimed at the U.S. and its technology industry.

China’s rare earth materials are crucial to the production of iPhones, electric vehicles and advanced precision weapons, although the imports were a relatively small part of the $420 billion U.S. goods deficit with China in 2018.

The Chinese tabloid Global Times also said Tuesday that China can play the “rare earths card” and that it’s “seriously considering” the move.

The stock market took a big hit amid the tit-for-tat strategies between the U.S. and China, with stocks poised to post their first negative month of the year. The S&P 500 has lost nearly 6% this month.