China warns giants of technology

File Reuters

UNITED STATES (VOP TODAY NEWS) — Following the trade dispute with the United States around Huawei, officials of several technology giants, including Dell, Microsoft, Samsung, have been brought together by the Chinese government to warn them that any reduction in their business could lead to retaliation.

The Chinese government has recently summoned senior technology companies to warn of the consequences of stopping their technology sales in China, US media reported on Saturday, AFP reported.

Washington announced in mid-May, in the midst of a trade dispute with Beijing, its intention to place China’s telecommunications giant Huawei on a list of suspicious companies that are banned from selling technology.

This measure, taken in the name of “national security” for fear that Beijing will use the US technologies for espionage, threatens the survival of the Chinese group, which needs components and software made in the USA for its products.

Earlier this week, the Chinese government convened executives from US companies Dell and Microsoft and South Korean Samsung – among others – to warn them that any cuts to their business in China could lead to retaliation, the The New York Times reported.

US companies were reminded that the Trump administration’s decision to ban technology sharing between Chinese and US groups “disrupted the global supply chain” and that “companies that apply this policy could permanent consequences,” the newspaper reported.

Companies based outside the United States will not be punished if they continue their business in China without change, the paper said.

Facebook has suspended the pre-installation of its applications on Huawei’s new devices on June 6, to comply with US sanctions, further isolating the Chinese giant, currently number two in smartphones and one of the world leaders in 5G equipment. Google also said in May that it would cut the bridges with Huawei.


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