China has opposed the move by the United States to blacklist telecoms giant Huawei and vowed to ensure maximum protection for its companies.
A spokesman for the Chinese Commerce Ministry said that China is against other countries enforcing unilateral sanctions on their entities. Expressing their disappointed, the spokesman said that the U.S ought to keep off from impacting Sino-U.S. trade links.
The last one week has been characterized by increased tariffs from the two trade rivals on all their goods. This erases any hopes that were there to end the trade war.
Before, Steven Mnuchin, the U.S Treasury Secretary had planned to travel to China purposely to engage in trade negotiations and then the Huawei crackdown began.
On Wednesday, the U.S. president Donald Trump signed an order which banned the use of telecom equipment in U.S firms. He said the equipment is a threat to natural security.
In another separate announcement, the U.S Commerce Department reported the addition of Huawei and other 70 affiliates to its “Entity List.”
In the event the order is executed, the Chinese owned company will need government endorsement before they can get components and also use American technology. U.S. officials have been staging campaigns against the use of Huawei network equipment in the next-generation 5G networks.
Huawei has not muted on the allegations of security issues raised against their products and has responded saying they are ready for talks with the U.S government to clear the air and give assurance of product security.
In their view, banning Huawei from trading in the U.S. is a dangerous move since it leaves the U.S. with only costly options to go for. The end result might greatly affect U.S companies’ interests as well as consumers. The U.S will also be left behind as others move to 5G deployment.
Last December, Meng Wanzhou, Huawei’s Chief Financial Officer was arrested in Canada on allegations of planning to defraud global banks concerning the relationship between Huawei and an Iran based-company. Wanzhou was moved to the U.S. for trial but she has denied the accusations.