China has responded to a new U.S. ban targeting telecom giant Huawei, threatening to retaliate through a series of countermeasures, including putting U.S. companies such as Apple, Qualcomm and Cisco on an “unreliable entity list” that would seriously impede their sales in Chinese markets. The U.S. Commerce Department on Friday threw a one-two punch at China’s high-tech efforts by announcing a new ban on global chip supplies to Huawei, while allowing a Taiwanese semiconductor producer to open a next-generation plant in the United States. In an FILE PHOTO: A Huawei company logo at Shenzhen International Airport in Shenzhen, Guangdong province, China, July 22, 2019. REUTERS/Aly Song/File PhotoA ban tailored for Huawei The U.S. Commerce Department issued a statement on Friday to amend an export control rule that “strategically targets Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.” Under the new rule, foreign companies using U.S. semiconductor and chipmaking equipment will be required to obtain a license to supply chips to Huawei or its affiliates. The rule has a 120-day grace period.
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