China is determined to fight the US ban on Huawei through any means possible, and that might include scaring the companies required to honor that ban. New York Times sources report that Chinese officials have warned that they could face retaliation if they cooperate with Trump administration trade restrictions. They could face “permanent consequences” if they honored the policy, the NYT said, and “punishment” if they pull manufacturing beyond the usual security-related diversification. It also encouraged lobbying to convince American politicians to change their minds.
The meetings were reportedly led by China’s central economic planning agency and the National Development and Reform Commission, and attended by representatives from its Ministry of Commerce and Ministry of Industry and Information Technology.
Chinese officials reportedly told U.S. companies they could face permanent consequences if they comply with White House policy. Meanwhile, non-U.S. companies were told that, so long as they continue their current relationships, they would face no adverse consequences.
The officials warned US firms against relocating their production lines to other countries, from following orders against doing business with specific companies, and that they should lobby against the Trump Administration’s efforts, saying that their actions could have permanent consequences. Non-US companies were reportedly told that if they continued to supply Chinese firms, they wouldn’t face such consequences. But the Times notes that US firms will likely won’t be effective, as such companies won’t want to incur legal trouble from breaking the law.
