Table of Contents
MAY 2019 {WAS FOR ONE YEAR TILL MAY 2020}
- The US has warned that letting Huawei and other Chinese telecom companies such as ZTE in American tech infrastructure can endanger the national security as the companies could be obliged to give up information to Beijing. Order extended for another year.
IN RETALIATION…
- “China will take forceful countermeasures to protect its own legitimate rights,”
ECONOMIC STRATEGIES LISTED BY CHINA
- Putting US companies on an “unreliable entity list”
- launching investigations and imposing restrictions on US companies such as Apple
- halting purchase of Boeing airplanes
PUTTING US COMPANIES ON AN “UNRELIABLE ENTITY LIST”
- Analysts also noted that if chips made by those firms cannot be sold to the Chinese market, one of their most important sources of revenue, it would be extremely difficult for US tech companies to recoup investment. Some may be mired in a loss.
- The chip industry is one of the top US exporters and one of the few sectors that still generates a trade surplus, largely driven by sales growth in China.
- A potential chip sales ban could cost US chip makers about $36 billion in revenue.
LAUNCHING INVESTIGATIONS AND IMPOSING RESTRICTIONS ON US COMPANIES SUCH AS APPLE
- “China will launch rounds of endless investigations on those firms, just like swords hanging over their head. It will dampen investors’ confidence and squeeze their income in the Chinese market, “ In the first quarter of 2020, China’s revenue made up 14.8 percent of Apple’s total revenue.
HALTING PURCHASE OF BOEING AIRPLANES
- China could possibly scrap all the current Boeing orders if the US steps on China’s bottom line, even if it means some Chinese firms have to pay for the liquidated damages. China, the world’s largest buyer for planes, could order more than 100 planes from the US firm that could worth 30 billion yuan every year.
EVEN SMALL COMPANIES WILL FEEL THE PAIN
- “They are vulnerable to restrictive measures. Once Chinese authorities impose sanctions on them, the cost is ill-afforded. Most small firms will be pushed to the brink of collapsing,”
ANALYSTS BELIEVE US HAS LOST THIS WAR
- The US has failed to kill Huawei with a ban that has lasted over a year, while it’s also fully aware that the longer the ban lasts, the higher cost US firms have to pay, and now it’s on the verge of backfiring. The US Department of Commerce is close to signing off on a new rule that would allow US-based companies to work with Huawei on setting standards for next-generation 5G networks
ANALYSTS BELIEVE US HAS LOST THIS WAR
- US has realized the cost of refusing to cooperate with the world’s largest patent contributor to next-generation technology.
- US companies are falling far behind Huawei on 5G patents.
- The US companies mentioned, such as Apple, Qualcomm, Cisco and Boeing, are all highly dependent on the Chinese market.
Latest Burning Issues | Free PDF
WhatsApp