A spokesperson for China’s Commerce Ministry stated on Friday that China is set to establish an unreliable entity list of foreign companies and individuals that seriously damage Chinese enterprises. This comes as a counterreaction to the moves by president Donald Trump to block the Chinese tech giant Huawei from doing its job in the United States.
‘’Foreign enterprises, organizations or individuals that fail to comply with market rules, deviate from the spirit of the contract, and impose a blockade or confiscation of Chinese enterprises for non-commercial purposes, which seriously damage the legitimate right and interests of Chinese enterprises, will be included in the list of unreliable entities. Specific measures will be announced in the near future,’’ said the spokesperson.
Earlier this month, President Donald Trump signed an executive order which gives him the power to block foreign companies from doing business in the United States if they are considered as a national security threat.
Shortly after, the U.S. Department of Commerce added Huawei to its ‘’entity list,’’ effectively banning the company from buying components from American companies without government approval, The Hill reports.
The list is being created because of an increase in unilateralism and trade protectionism, according to the spokesperson for the Chinese Ministry of Commerce. He also added that the list is meant to safeguard economic and trade rules and multilateral trading system, oppose unilateralism and trade protectionism, and safeguard China’s national security, social public interests and legitimate rights and interests of enterprises.
The statement came right after China issued a warning to Canada for the potential consequences if the country decides to join forces with the United States against China in this so-called trade war.