A geopolitical situation like a trade war is creating lots of problems for two nations. Chinese tech giant Huawei has got banned from the US government, which is affecting hugely on its production and revenue. Now to retaliate against US Chinese government is trying to create a blacklist of those companies which won’t be allowed to do business in there. China has always been a vital supplier of goods and services to the USA, but because of trade war issue, it is now facing problems with Trump administration.
President Trump wants to have a fair trade deal because he thinks Chinese companies are a threat to data security like Huawei, and government controls them. However, now Chinese government is trying to create an “unreliable entity list” in which they are going to include companies, organizations, and entities which are not reliable for doing business with. Those companies who violate market rules will be added in that list.
This new plan has come as a result of Huawei’s ban in the US region. Government of China is its trying best to stay in the race of trade war but failing at it miserably. Many manufacturing and retail companies in China have lost half of their US-based customers because of increasing tax rates. Now it wants to do same to other foreign companies to get revenge of what Trump has done to Huawei. Trump administration has said that Huawei is a threat to privacy, and it poses a significant risk.
They have even convinced allied countries because of which UK also now wants to put restrictions on Huawei’s sales. Huawei’s plan of becoming one of the largest smartphone making company might get ruined because of Trump and his tariffs. Now, this new move of China to create a blacklist might bring more enemies for China.
Paul is an American-based writer covering Latest business trends. Paul cover Business and media for many news sites. He has been breaking news and writing features on these topics for major publications since 2012. Paul prefers writing about business news keeping science and technology into perspective.