Tim CookSource: Apple

What you need to know

  • China is threatening the U.S. with countermeasures over its plan to block shipments of semiconductors to Huawei.
  • It could involve investigations and restrictions aimed at companies like Apple.
  • A report claims some companies could be added to an "unreliable entity list".

A report suggests that China is preparing countermeasures against the U.S. over its treatment of Huawei, which could include restrictions and investigations aimed at companies like Apple.

According to Global Times:

China is ready to take a series of countermeasures against a US plan to block shipments of semiconductors to Chinese telecom firm Huawei, including putting US companies on an "unreliable entity list," launching investigations and imposing restrictions on US companies such as Apple and suspending the purchase of Boeing airplanes, a source close to the Chinese government told the Global Times.

President Trump recently signed an extension barring commercial trade with companies like Huawei and ZTE, which the administration believes are a threat to national security.

According to a source speaking to the outlet, "China will take forceful countermeasures to protect its own legitimate rights."

The report claims that China may be planning measures such as adding U.S. companies to an "unreliable entity list". There is no indication as to what that entails exactly, however, the report also mentions imposing restrictions or launching investigations into US companies including Apple, Cisco, and Qualcomm over regulations such as Cybersecurity Review Measures and Anti-monopoly Law.

The list of unreliable entities was announced in May of 2019 by the Chinese Ministry of commerce, targeting "entities that seriously undermine the legitimate interests of Chinese companies." It was no doubt enacted in direct opposition to measures and rhetoric from President Trump over Huawei and ZTE. A listed company can face "necessary legal and administrative measures and the Chinese public will also be warned against dealing with it to reduce risks."