A Huawei production line in the southern Chinese city of Dongguan. The Trump administration has banned sales of key American technology to the company.Credit Jason Lee/Reuters
New York Times: China Summons Tech Giants to Warn Against Cooperating With Trump Ban
SAN FRANCISCO — The Chinese government this past week summoned major tech companies including Microsoft and Dell from the United States and Samsung of South Korea, to warn that they could face dire consequences if they cooperate with the Trump administration’s ban on sales of key American technology to Chinese companies, according to people familiar with the meetings.
Held on Tuesday and Wednesday, the meetings came soon after Beijing’s announcement that it was assembling a list of “unreliable” companies and individuals.
That list was widely seen as a way of hitting back at the Trump administration for its decision to cut off Huawei, the Chinese electronics giant, from sales of American technology. The United States has accused Huawei of stealing trade secrets and conducting surveillance on behalf of Beijing.
Details about the meetings, the latest move in two weeks of high-stakes economic brinkmanship between the United States and China, were shared by two people familiar with them, who asked not to be named because they were not authorized to discuss them and could face retribution.
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WNU Editor: Beijing sounds desperate.
9 comments:
No, they're not.
Sounds like a clear threat to me. It might be time for our erstwhile "tech giants" to get US personnel the Hell out of China. Before they are harassed and incarcerated by Chinese authorities. Then get their factories the Hell out of China too.
/because Chinese strong arm tactics always get such super results.
Russ, what doesn't sound like a clear threat to you? Git yer 'tater peelin' wrist ready for the stormin' of Tsingtao.
"The Chinese government...summoned major tech companies...to warn that they could face dire consequences if they cooperate with the Trump administration’s ban on sales of key American technology to Chinese companies"
Anon, you assert this meeting and warning is NOT a threat? What world do you live in?
Rodger, we're gonna need your grandkids to airdrop behind the lines in Chungking to perform sabotage missions on critical command post, petroleum and lubricant facilities that have not been reduced by kinetic means.
They'll be awarded medals posthumously.
I am more interested in how the tech giants play this. And yes, a threatening action by China - duh!
Mike that is a key point.
They were encouraged to establish manufacturing facilities in Asia, by the US government of the day, and subsequent governments, and are very comfortable with being global entities. China is a really big part of that environment.
What is happening now is no doubt viewed by them as an unnecessary attack on "their" business model. Also, take China out of the Asian production stream and the countries that are left will gain considerably. The elimination of the massive Chinese production facilities, assuming of course that it spread to all types of manufacturing, result in less competition globally and therefore could lead to higher cost of production.
Remember Walmart bragging a few years back that they had placed a trillion dollars in orders with China for the next year.
rule number one in capitalism: go where there is a market and make money no matter what restrictions you may encounter so long as you can work with that market
Just look at who started our agreements with China. Nixon. Without him the chinese would still be living in the boonies.
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