PUBLISHED THU, MAY 16 2019 | Patti Domm
China has plenty of ways it can retaliate against the U.S. treatment of Huawei, and U.S. companies could feel the brunt of it.
Both the White House and Commerce Department Wednesday took actions against the Chinese telecom company, which would essentially ban it from selling technology in the U.S. market and also stop it from buying the Qualcomm chips it needs for its production. Huawei was put on the Commerce Department’s Entity List which would require companies to apply for a license to sell technology to Huawei, thus limiting its access to U.S. technology.
The U.S. may see the action against Huawei as a lever in its China trade negotiations, which have hit a rough spot and now could take several more months. China’s possible reactions range from encouraging boycotts of U.S. products, favoring other companies over American companies, and conducting nuisance regulatory enforcements and inspections.