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Trump's administration makes official Huawei's blacklisting further escalating trade dispute with China

Trump's administration makes official Huawei's blacklisting further escalating trade dispute with China

The government of United States of America's decision to place restrictions on usage of technology belonging to foreign companies considered "threats" has irked China.

People visit Huawei's booth at an exhibition during the World Intelligence Congress in Tianjin, China May 16, 2019.

While some U.S. allies - notably Australia and New Zealand - have followed Trump's lead on Huawei, others have been more reticent. The action forces USA suppliers to apply for licenses in order to continue selling to the Shenzhen-based firm, significantly limiting access to a market that accounted for $16 billion of its $70 billion procurement budget a year ago, according to a Huawei spokesperson. Hopes for a deal to end their trade war have been thrown into doubt after the world's two biggest economies raised tariffs on each other's goods in the past week.

After holding Kovrig and Spavor in undisclosed locations since December, China confirmed the formal charges just as the US government all but banned American companies from doing business with Chinese tech giant Huawei, a move that could badly cripple a firm considered by China to be a national symbol of industrial prowess.

Claiming that participation of "foreign adversaries" in developing America's 5G network will "undermine United States national security or foreign policy interests", President Donald Trump on Wednesday signed an executive order barring U.S. companies from using telecommunications equipment made by Chinese firms. America has been warning allies not to use Huawei equipment in their 5G networks else face being cut off from U.S. intelligence, and it recently accused the firm of being funded by Chinese state security.

In Beijing, a Chinese Commerce Ministry official said,"China will take all necessary measures" to ensure the rights of Chinese companies.

Yesterday, Donald Trump signed an executive order that bars the government from doing business from telecom companies considered national security threats.

"We oppose the act of any country to impose unilateral sanctions on Chinese entities based on its domestic laws, and to abuse export control measures while making "national security" a catch-all phrase", spokesperson Lu Kang said at a regular briefing on Thursday.

"While the intent is to punish Huawei, ultimately USA companies are also being penalized", Jacobson said. Under the new regime, Google would require specific US government approval to license Android to Huawei.

This move is going to affect a lot of companies.

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China is also angry about Canada's arrest of Huawei Chief Financial Officer Meng Wanzhou in December. Huawei, which has over and over denied the charges, did not quickly remark. China also slapped formal charges of spying on two Canadian citizens who have been under detention for several weeks.

China threatened to retaliate, accusing Mr Trump of engaging in industrial sabotage by using state security "as a pretext for suppressing foreign business". He also announced plans to meet Chinese President Xi Jinping at a G20 summit in Japan late next month.

The US, it is true, is in the midst of a trade war with China and stands open to accusations that it is trying to block Huawei's ambitions for purely protectionist reasons.

"Negotiations and consultations, to have meaning, must be honest", Lu told reporters at a separate daily briefing. "In worldwide trade, the basis is mutual respect and mutual benefit", Lu said. "Second, one's word must be kept, and not be capricious".

As negotiations toward resolving the U.S.

"The US's bullying and maximum pressure tactics have caused the China-US economic and trade talks to suffer a serious setback", Chinese Commerce Ministry spokesman Gao Feng said.

MF: If Trump gets a trade deal with China, will the U.S. government concern over Huawei evaporate? Last year, Trump acted on the report and imposed a 25% tariff on steel and a 10% tariff on United States aluminum imports. It said the United States would be limited to low quality, yet more costly, mobile systems.

"We urge the USA to stop this practice and instead create better conditions for business co-operation", Mr Lu said.

ENERGY: Benchmark U.S. crude advanced 70 cents to $62.73 a barrel in electronic trading on the New York Mercantile Exchange while Brent crude, the global standard, added 64 cents to trade at $72.41 per barrel.

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