China to compile hit list of ‘unreliable’ foreign entities in trade war

Huawei ‘axes meetings with US and sends American workers home

The announcement of China's own blacklist comes just weeks after the US Commerce Department created an entity list that required American companies to get government approval before conducting business with Huawei and other Chinese firms.

Entities are "unreliable" if they "fail to comply with market rules, break from the spirit of contracts and block or stop supplying Chinese enterprise for non-commercial reasons, seriously damaging the legitimate rights and interests of Chinese enterprises", ministry spokesman Gao Feng said at a news briefing.

China said Friday it will draw up a list of "unreliable entities" that harm the interests of Chinese companies. "Necessary measures will be taken" against those on the list, he said, adding that specifics would be released soon.

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FedEx earlier this week apologised for misrouting some Huawei parcels after the Chinese telecom giant said it was reviewing its ties with the package service over the incident.

The US government has moved to curb Huawei's ability to sell equipment in the US and buy parts from US suppliers, potentially crippling one of China's most successful - but controversial - global companies.

China is threatening to punish foreign companies in an apparent retaliation for the Trump administration's blacklisting of Huawei.

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That may be bad news for United States tech suppliers in China. Two packages containing documents being shipped to the company in China from Japan were diverted to the US without authorization, Reuters reported.

Another measure China has considered is restricting exports of rare earth minerals to the U.S. That's a big deal because these minerals are used in high-tech electronics, automobiles, and even for defense. Investors are now looking to a meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the end of the month at the Group of 20 Summit in Osaka for a possible rapprochement and easing of trade tensions.

On Saturday, Chinese retaliatory tariffs on the US goods kicked in, after the Trump administration raised tariffs on Chinese goods worth $200 billion to 25 percent, from 10 percent.

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