Will Beijing take revenge on Qualcomm, Cisco, Apple, and Boeing? - SupChina
Free

We're a new type of news publication

China news you won't read elsewhere.

Weekly Newsletter

Get a roundup of the most important and interesting stories coming out of China.

Podcasts

Sinica, TechBuzz China, and our 6 other shows are the undisputed champs of China podcasts. Listen now.

Feature Articles

Interactive, web-based deep dives into the real China.

Premium

Join the thousands of executives, diplomats, and journalists that rely on SupChina for daily analysis of the full China story.

Daily Newsletter

All the news, every day. Premium analysis directly from our Editor-in-Chief Jeremy Goldkorn.

24/7 Slack Community

Have China-related questions and want answers? Our Slack community is a place to learn, network, and opine.

Free Live Events & More

Monthly live conference calls with leading experts, free entry to SupChina live events in cities around the world, and more.

"A jewel in the crown of China reporting. I go to it, look for it daily. Why? It adds so much insight into the real China. Essential news, culture, color. I find SupChina superior."
— Max Baucus, former U.S. Ambassador to China

Free

We're a new type of news publication

China news you won't read elsewhere.

Weekly Newsletter

Get a roundup of the most important and interesting stories coming out of China.

Podcasts

Sinica, TechBuzz China, and our 6 other shows are the undisputed champs of China podcasts. Listen now.

Feature Articles

Interactive, web-based deep dives into the real China.

OR… for more in-depth analysis and an online community of China-focused professionals:

Learn About Premium Access Now!
Learn More
Minimize
Learn More
Minimize

Will Beijing take revenge on Qualcomm, Cisco, Apple, and Boeing?

boeing china reuters

Happier days: Xí Jìnpíng 习近平 and Ray Conner, then-president of Boeing Commercial Airplanes, applaud after Xi’s tour of the Boeing assembly line in Everett, Washington September 23, 2015. REUTERS/Mark Ralston/Pool

It feels like May 2019 all over again: Exactly a year ago today, the Trump administration first announced its “entity list” designation for Huawei. These restrictions on American companies exporting critical components to Huawei presented a potential existential threat to the company, and comprised the most significant salvo in a tech war that accompanied the trade war.

At the time, the Chinese commerce department responded by threatening to create an “unreliable entities list” for American companies — but this threat never materialized.

Today, the U.S. Commerce Department proposed new rules that would tighten the “entity list” designation, and further restrict Huawei’s access to American technology. The rules specifically mention HiSilicon, an affiliate of Huawei’s that recently broke into the list of the world’s top 10 chipmakers.

As it has regularly over the past year, the Trump administration is extending the Temporary General License for another 90 days to allow exemptions for some exports, though per the New York Times, the Commerce Department “warned this would be the final extension.”

China is again threatening an “unreliable entities list,” this time via the nationalistic tabloid the Global Times. Global Times editor Hú Xījìn 胡锡进 added on Twitter: “Based on what I know, if the U.S. further blocks key technology supply to Huawei, China will activate the ‘unreliable entity list,’ restrict or investigate U.S. companies such as Qualcomm, Cisco and Apple, and suspend the purchase of Boeing airplanes.” The same threats appear in an article highlighted prominently on the Global Times’ Chinese language home page.)

What does this mean?

It is hard to tell if the threat is credible, especially since it is coming from an unnamed source in the Global Times and not directly from the Chinese commerce department. But given the renewed downward spiraling of U.S.-China relations in recent weeks, it would be unwise to rule anything out. Things can always — and almost certainly will — get worse.

Share
Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company's newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.