Beijing counter-strike over US sanctions list

Huawei has been targeted by Washington over fears that it could be used to infiltrate US security networks. (Shutterstock)
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Updated 20 September 2020

Beijing counter-strike over US sanctions list

  • Foreign enterprises in the firing line under planned punitive measures

BEIJING: China said on Saturday it had launched a mechanism enabling it to restrict foreign entities, a much-expected move seen as retaliation to US penalties against Chinese companies such as telecom giant Huawei.

An announcement by the Ministry of Commerce did not mention any specific foreign entities, but broadly spelled out the factors that could trigger punitive measures, which may include fines, restrictions on import export business or investment in China, and the entry of personnel or equipment into the country.

It covers “foreign enterprises, other organizations and individuals,” it said.

The launch of the “unreliable entities list” ups the ante in the escalating commercial fight with the Trump administration, which has used its own “entity list” to bar Huawei from the US market on national security grounds.

The announcement also came a day after the United States ordered a ban on downloads of popular video app TikTok and effectively blocked the use of the Chinese super-app WeChat on similar grounds, which prompted a threat by China to strike back.

Beijing would consider sanctions on entities whose activities “harm China’s national sovereignty, security, and development interests” or violate “internationally accepted economic and trade rules.”

That language closely tracks wording that Beijing has used to repeatedly denounce US actions against Chinese companies.

The ministry said that if an entity is suspected of violating the provisions, an investigation would be launched under China’s Cabinet, the State Council.

The foreign party in question would have an opportunity to defend its conduct to the Chinese investigators.

Chinese enterprises that rely on business with the targeted organizations also will be allowed to apply for exemptions from any ban on doing business with them, as the US system allows.

The US and China are engaged in an escalating trade battle centered on technology.  Huawei, the world’s leading supplier of telecoms networking equipment, has been a particular target.

Washington has used its own entity list to essentially ban Huawei from the US market and prevent American companies from doing any business with it or with Huawei-affiliated organizations.

The US says Huawei could be used by Chinese state security to infiltrate communications networks.

China’s government and Huawei deny that, saying the US has offered no evidence supporting the claim.

Under a US order on Friday, the Tencent-owned WeChat app would lose functionality in the US from Sunday. TikTok users will be banned from installing updates but could keep accessing the service through Nov. 12.

China has for years blocked or restricted leading US tech companies from operating in its market, including Facebook, Twitter and Google.


Nvidia deal for Arm will drive computing power growth, says SoftBank’s CEO

Updated 23 October 2020

Nvidia deal for Arm will drive computing power growth, says SoftBank’s CEO

  • Saudi Arabia's Public Investment Fund (PIF) is an anchor investor in the $100 billion Vision Fund

TOKYO/DUBAI: SoftBank Group Corp. CEO Masayoshi Son said on Thursday the sale of chip designer Arm to Nvidia Corp. will drive growth in computing power, in his first public comments since the $40 billion deal was announced in September.
Son made the comments at a virtual summit about artificial intelligence hosted by Saudi Arabia, an anchor investor in the $100 billion Vision Fund, at which he reiterated his belief that AI would transform society.
The Nvidia deal, part of a series of asset sales by Son, whose group has been shaken by soured investments and the COVID-19 pandemic, has raised concerns it will threaten Arm’s role as a neutral supplier in the industry.
Son is set to speak next week with Nvidia CEO Jensen Huang at SoftBank World, the group’s annual event for customers and suppliers that is being retooled as it focuses on investing.
SoftBank’s growing cash pile is driving speculation about future investment plans, with the Vision Fund targeting external funding for a blank-check company, a source said, in a sign the group is regaining its mojo.
“I am a risk taker,” Son said on Thursday.
Rajeev Misra, CEO of SoftBank Investment Advisers which oversees the Vision Fund, said the market share gained by online commerce companies in the last six to eight months is more than what they gained in the previous four years put together.
“COVID has accelerated the acceleration of AI even further,” Misra told the same conference, adding in the 105 companies Vision Fund 1 and 2 have invested in, artificial intelligence is the core of their businesses.