The ongoing trade war between the US and China is showing no sign of slowing down and it could actually get worse as China has announced plans to follow in the US' footsteps by creating a blacklist of its own.
The US recently created an Entity List filled with unreliable foreign firms that could jeopardize its national security and now China is preparing to do the same.
Spokesperson for China's commerce ministry, Gao Feng revealed that the nation will create an “entity list” that will include foreign businesses that have either stopped or limited their work with Chinese firms, saying:
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“Foreign enterprises, organisations or individuals that do not comply with market rules, deviate from a contract’s spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be included on a list of ‘unreliable entities.”
The announcement of China's own blacklist comes just weeks after the US Commerce Department created an entity list that required American companies to get government approval before conducting business with Huawei and other Chinese firms.
However, a 90-day reprieve has been granted which would allow Google and other companies to offer critical support to Huawei.
Google, Intel, Qualcomm and several other American firms have begun to curtail their business agreements with Huawei following the US ban on the company.
Just as the US blacklist has, a Chinese blacklist could have huge implications for Silicon Valley tech giants that operate in the country.