China warns tech giants after US Huawei ban

China warns tech giants after US Huawei ban

China warns tech giants after US Huawei ban

China accuses Trump of trying to undermine Huawei's development because the company is the world leader in next-generation 5G mobile technology and faces no American competition.

Held on Tuesday and Wednesday, the meetings came soon after Beijing's announcement that it was assembling a list of "unreliable" companies and individuals.

Chinese state media say the government will create a system to protect China's technology as the US restricts the access of Chinese companies to American technology in a spiraling trade dispute.

It is reportedly not unusual for China to summon foreign company officials to voice concerns over specific policies.

One person with another USA tech company in China who was briefed by colleagues on the company's meeting told Reuters that the tone was "much softer" than expected. The intervention seemed created to rally support for Huawei, though the company was not specifically mentioned, the two people said.

"I think they realise they still need USA tech and products for now; self-sufficiency will take a long time, and only after then they can kick us out", the person said.

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The New York Times reported that other companies summoned for meetings last Tuesday and Wednesday included U.S. computer maker Dell Technologies, South Korea's Samsung Electronics and SK Hynix, and British chip designer ARM, which last month halted supplies to Huawei. The meetings also included semiconductor makers Arm of Britain and SK Hynix of South Korea.

"Based on what I know, China is building a management mechanism to protect China's key technologies", Hu Xijin, the influential editor of the Chinese daily Global Times, said Saturday on Twitter.

The powerful National Development and Reform Commission has been tasked with establishing a list system to "more effectively forestall and defuse national security risks", the Xinhua news agency said. "This is a major step to improve its system, and also a move to counter the US crackdown".

China reportedly called a meeting last week with global tech giants like Microsoft, Samsung, and British chip-manufacturer Arm, urging them not to comply with a US blacklist.

At the time, Reuters cited an unnamed source as saying that following the decision, Huawei smartphones, which run on Google's Android operating system, are expected to lose access to updates for certain apps and services, including the Google Play Store, Gmail, and YouTube, but the existing devices will be safe from future restrictions.

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