Huawei: China threatens to retaliate over United States sanctions

Embedded Image

The U.S. Department of Commerce said Wednesday it was putting Huawei on a blacklist that could ban it from doing business with its American suppliers.

First, the White House issued an "Executive Order on Securing the Information and Communications Technology and Services Supply Chain", which boils down to granting the executive branch massive power to veto the use of "information and communications technology or services designed, developed, manufactured, or supplied, by persons owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary".

"This action stems from information available to the Department that provides a reasonable basis to conclude that Huawei is engaged in activities that are contrary to US national security or foreign policy interest".

The other big backdrop to this week's measures is the ever-escalating trade war. While US steel companies like U.S. Steel (X) and AK Steel (AKS) supported Section 232 tariffs, automakers like Ford (F) and General Motors (GM) have been apprehensive over the Section 232 probe.

"We urge the US to stop its incorrect actions.to avoid doing additional harm to China-US economic and trade relations", Gao said.

The order doesn't mention Huawei or China by name, but it was widely seen as targeting Huawei and other Chinese companies such as ZTE.

Also on Thursday, China's Foreign Ministry announced the formal arrest of two Canadian citizens who have been detained shortly after Meng's arrest. Ltd. said it will pursue "remedies immediately and find a resolution" in face the threats of a business ban in the United States.

The company has vehemently denied the allegations and insists it is independent from state control. The US Department of Commerce has to formulate a specific implementation plan in 150 days, which means that Huawei still has 150 days to do some "free" business. It later revised the number of affiliates down to 68. "This information includes the activities alleged in the Department of Justice's public superseding indictment of Huawei, including alleged violations of the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA by providing prohibited financial services to Iran, and obstruction of justice in connection with the investigation of those alleged violations of USA sanctions". Requests for approvals for transactions will be reviewed under a "policy of presumption of denial", which suggests obtaining permission will be very hard.

Taiwan makes history as Asia’s first to endorse gay marriage
Ms Tsai's ruling Democratic Progressive Party (DPP) holds the majority in Parliament, occupying 68 out of 113 seats. The new bill will now go into effect next week and gay couples are already lining up to officially Wednesday .

Shares in Huawei suppliers in China skidded on the news as markets opened in Asia, with Luxshare Precision Industry down as much as 6.1%. It runs research and development bases around the world in an effort to wean itself off of high-end US components.

CNBC's Joe Kernen reported on two emails he received from a "well-known CEO" and a "really smart telecom investment banker", as the discussion on "Squawk Box" turned to the president's latest salvo in the U.S.

Susquehanna Financial Group analyst Christopher Rolland, who said he believed Huawei had built up a one-to-two-year supply of USA components, cut price targets on several microchip companies, including Xilinx Inc. Qualcomm fell 4 per cent, Broadcom Inc. was down 2.3 per cent and Xilinx Inc.

China retaliated on Monday with higher tariffs on a revised list of $60 billion worth of US products.

"There's other things they can do, and M&A would certainly be one thing", said Stacy Rasgon, an analyst with Bernstein.

"We didn't even know there was this decision until members of the press received a statement Wednesday night", says on industry representative who declined to be named because they were not authorized to speak publicly.

"We should also not be influenced by the threat of the economic cost of either delaying 5G or having to settle for a less capable and more expensive provider", he said.

Related News:



Most liked

Cardinals star Patrick Peterson gets 6-game suspension for PEDs
The eight-time Pro Bowler was mentioned as a trade target both around the trade deadline last season and during this offseason . Last month, he deleted all mentions of the Cardinals on his social media pages in another reported rift with team management.

Sudan opposition says military rulers’ suspension of talks is regrettable

Missouri, latest US state to restrict abortion
Senator Kirsten Gillibrand of NY , also a 2020 candidate, said, "This is a war on women, and it is time to fight like hell". There are now 23 Democrats vying for their party's presidential nomination in 2020, but Massachusetts Sen.

Realme X, Realme X Lite announced: Price, specifications and more
Realme X is also the first Realme smartphone to come with an optical in-display fingerprint sensor embedded in the display. Coming to Realme X India launch, Realme CEO Madhav Seth is already arranged a special media meeting in Beijing, China.

Iran says exercising restraint despite 'unacceptable' escalation of U.S. sanctions
Trump is in danger of being cornered into choosing between a counterproductive use of force and allowing Iran to cross red lines". Mr Lavrov said Mr Pompeo told him that a potential deployment of 120,000 USA troops to the Middle East was only a "rumour".

NYC mayor says he'll decide this week on presidential run
Buildings are responsible for almost 70 percent of greenhouse gas emissions in the city, the mayor's office said in a statement. NY has positioned itself as a bulwark against Trump administration attempts to dismantle action to address climate change.

Manchester City under siege
And Liverpool FC defender Robertson, 25, feels that Manchester City will be anxious about the Reds' recent improvements. Speaking in an interview quoted by BBC Sport , Robertson said: "We are a tight-knit group, a young group".

Selena Gomez: social media is bad for young people
What do YOU think of all this, Perezcious readers? She claimed many young people were unaware of important news issues. Many of Hina Khan's fans took to their social media pages to compliment and congratulate the actress.

Is Trump wrong on China tariffs?
The president also ordered tariffs to be raised on all remaining USA imports from China, which are valued at around $300 billion. China on Wednesday reported surprisingly weaker growth in its retail sales and industrial output in April.

Firefighters rescue two people dangling from Oklahoma City skyscraper
Video from the fire department - taken from the ground - shows the basket swinging at about 8 a.m. Paramedics checked the workers out, CNN affiliate KOCO reported , and they refused treatment.

Jets fire GM Mike Maccagnan, HC Adam Gase named interim GM
New York, according to ESPN's Adam Schefter, could also follow the Raiders' lead and hire Daniel Jeremiah away from NFL Media. If you're a NY sports fan who puts your support behind the Knicks and Jets, well, you've had better days.

BC woman identified as victim of Alaska plane crash
The Royal Princess departed Vancouver last Saturday, and was scheduled to arrive in Anchorage , AK on Saturday May 18. The second, smaller plane-a de Havilland Beaver-was carrying four cruise guests and a pilot, on an independent tour.

7.5 magnitude quake rattles residents on Papua New Guinea island
On May 7, Papua New Guinea was hit by a 7.2-magnitude natural disaster which was so powerful it was felt in Australia. The reported epicentre lies within the so-called Pacific Ring of Fire, an area of regular seismic activity.

Student: Colorado School Shooting Suspect ‘Always Joked’ About Mass Shootings
Cecilia Bedard, 19, had known Castillo since elementary school and said he was always friendly, modest and excited to help people. An aspiring Marine, Bialy said the incident will give him the confidence to act when called upon when he begins service.

One dead in Sri Lanka anti-Muslim riots following Easter terror attack
Sri Lankan Catholics pray during mass which resumed after the Easter Sunday attacks, at the "All Saints" Church in Colombo . All the windows and doors of the soft-pink building were smashed and copies of the Qur'an were thrown onto the floor.