China warns top tech firms after US Huawei ban, Latest Business News - The New Paper

China warns top tech firms after US Huawei ban

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WASHINGTON: The Chinese government convened top tech companies last week and warned them of consequences if they cut off technology sales to the country, US media reported on Saturday last week.

The meeting followed US President Donald Trump's move last month to blacklist Chinese tech giant Huawei over national security concerns, threatening the company's global ambitions and ramping up the months-long trade battle between the two countries.

Last week, the Chinese government summoned executives from American companies Dell and Microsoft and South Korea's Samsung, among others, to warn them that any moves to ramp down their businesses in China may lead to retaliation, The New York Times reported.

American companies were told "that the Trump administration's move to cut off Chinese companies from American technology had disrupted the global supply chain, adding that companies that followed the policy could face permanent consequences", the newspaper reported.

Companies based outside the US were told that as long as they maintained business as usual, they would not be punished, the newspaper reported.

Last Friday, Facebook announced it would cut Huwaei off from its popular social networking app to comply with the US sanctions, further isolating the company that has become the world's second largest smartphone vendor.

Google made a similar announcement in May.

Washington and Beijing resumed their trade battle last month when negotiations in the US ended without a deal and Mr Trump raised tariffs on US$200 billion (S$272 billion) in Chinese goods.

Beijing retaliated with its own tariff hike on billions of dollars worth of US goods.

The US move to cut Huawei off from American hardware came next but was delayed by 90 days to prevent economic disruptions. - AFP