Briefing: China hits back at US with plans for its own ‘entity list’

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谁会列入“不可靠实体清单”?中国明确四种考虑因素 – Xinhua

What happened: China is preparing retaliatory measures against a US ban of Huawei by creating its own entity list that would target companies that close off a supply chain or “discriminate” against Chinese companies for non-commercial reasons. Such practices violate anti-trust laws in any country and therefore an “unreliable entity list” will be established with the aim to maintain global trade order and protect the rights of Chinese enterprises in the multilateral trade system, Wang Hejun, a senior government official of the Ministry of Commerce (MOFCOM) said Saturday in an interview in Beijing. Consequences for companies listed as unreliable entities will align with existing guidelines on foreign trade, anti-trust, and national security, said a MOFCOM spokesman on Friday during a media briefing.

Why it’s important: The move could deliver a heavy blow to foreign companies in China. Beijing on Saturday started imposing tariffs up to 25% on $60 billion worth of US goods, primarily on agricultural products like peanuts, sugar, and wheat. The central government also began an investigation of FedEx after Huawei said several of its packages destined for company addresses in Asia were diverted to the US. FedEx later apologized and pledged to fully cooperate with the investigation. The central government has yet to reveal detailed measures of its blacklist, but Wang said that listed foreign companies, individuals, and organizations will have the right to appeal.