China warns America’s tech companies about complying with the Huawei ban

June 9, 2019

Two weeks ago, Huawei was banned from doing business with American companies. The initial fallout included even standards bodies like those for Wifi and Bluetooth but has been muted as negotiations continue on all ends. It was also reported this week that Google was lobbying to retain its ability to trade with Huawei. Aside from security concerns, one can’t imagine ARM, Google, and Intel were very happy to lose one of their largest sources of income customers. China isn’t sitting still and waiting for America to pick a side.

Chinese officials summoned major tech companies last week to warn of dire consequences should they restrict sales of their products to Chinese firms as per the Trump administration’s instructions.

The meetings involved agents from China’s central economic planning agency and the National Development and Reform Commission, as well as their Ministry of Commerce and Ministry of Industry and Information Technology.

It’s no secret that the global tech industry is dominated by US firms both hardware and software wise. For a while, nation-states have let that stand. The notion that the US cold cut off a large, International tech company from being able to function without any good reason has been a Pandora’s box that none thought anyone with brains would open.

Now, no matter how the situation plays out. Huawei — and other tech companies — will always have one eye open when dealing with the US (and even other non-national) tech firms.

Source: CNBC

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