China Responds To US By Blocking US Tech Products In China After Blocking Huawei

China retaliates against the United States on Friday, with the state Cyberspace Administration issuing its latest draft cybersecurity regulations. The draft states that “to improve the security and control of key information infrastructure and maintain national security,” companies purchasing “network products and services that affect or are likely to affect national security” (Potentially Threatening) now need to evaluate national security risks before doing so. Exactly the same as what the United States did to Huawei some time ago in the US.

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“We don’t want to see another wall and we don’t want to have another painful experience.” Hu Houkun, Huawei’s top brass, said in a speech near the site of the Berlin Wall, also on Friday. “We don’t want to build a new wall in terms of trade, and we don’t want to build a new wall in terms of technology either. We need a unified global ecosystem that can help us to promote faster and more powerful technological innovation for economic growth.”

Huawei has had a rough time over the past few months for dealing with the “domino effect” of the supply chain following the US ban on Huawei. Google has also taken the media by storm and made headlines a week over the past week, after cutting Android licenses on upcoming Huawei products and Google apps and services. Since then, Microsoft, Qualcomm, Intel and others are known to have joined. Even group WiFi and SD card industry has attracted cooperation forward with Huawei. But surprisingly Huawei has also announced plans for a new OS and app store of their own without involving well-known OS like Android and Microsoft.

But with an embargo of its many former affiliates make Huawei is a little flimsy, because ARM which is the chip maker company that Huawei subscribes to in making Smartphones has also stopped working after the US dropped the ultimatum “ARM is the lifeblood of the smartphone market, because ARM is responsible for how most smartphones work. The company’s architecture and instruction set are licensed by everyone in the smartphone industry. ”

“This is a dangerous policy, Hu told his audience in Potsdam.” It goes against the values of the international business community, breaks global supply chains and disrupts fair competition in the market. This could happen to other industries and companies in the future if we don’t face this problem together. ”

China’s cybersecurity measures are designed to echo and overcome US sanctions on Huawei, as well as leading state surveillance equipment makers, including HikVision and Dahua. Under the new terms of reference, domestic organizations including network operators, IT service providers and even financial services companies, need to carry out “a comprehensive analysis and evaluation of the risks posed by national security.”

Nick Marro, an analyst from The Economist Intelligence Unit Hong Kong-based, told SCMP that “this ambiguity in US regulations means that officials have a fair amount of flexibility in how they want to implement this – meaning it can be applied to US companies in a way that embodies ‘qualitative measures’ as part of China’s trade war response. ” (reply response).

goal, The Administration’s claim in the consulting document, is to “promote the application of advanced technology, increase fairness and transparency, and protect intellectual property rights.” The Central Network Security and Informatization Committee “will take national leadership.”

Given the size and growth of the Chinese market, Beijing’s inevitable move will be taken very seriously by tech companies lobbying Washington. The US may control high-tech supply chains, but China controls what is arguably the world’s most “greedy” market in the sense of “business.” The potential impact has been perfectly illustrated by Apple’s recent woes in the country, to Huawei’s benefit.

“It appears that more and more parts of ‘Make America Great Again’ involve denying China’s right to continue to advance and improve living standards, the China Daily commented on Saturday.” This is also seen in the statement demanding China abandon its Made in China program. For what reason should they do this except hinder China’s progress? It’s not just about Huawei or China. It is about the viability of a global rules-based trading environment from which all benefit. ”

Huawei needs Beijing to act and act quickly to prevent consumers from running the brand in the wrong direction. There have been reports that Huawei smartphones are being traded for rivals and interest from buyers and hence Huawei’s current price is dropping rapidly. The company has also seen its new and expensively developed 5G handsets pulled from the UK’s two biggest 5G launches (Cancel). Unless Huawei is willing to materially weaken its rivals, why would consumers buy products that they perceive as disoriented?

Asked on Friday whether “China is willing to discuss the Huawei situation as part of US trade negotiations,” a foreign ministry spokesman said, “we urge the US to correct the wrongful act of using state power to bring down foreign businesses for illegitimate interests.” China believes that trade and economic differences between the two countries should be resolved through friendly dialogue and negotiations. ”

Cyberspace Administration Consultation lasts for a month, it’s almost as if it’s designed to provide an eye for bilateral talks and practical deals before the economic damage gets too high on either side.

Source: Forbes, CAC ,China Daily and Canalys

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