USA blacklisting of Huawei prompts global firms to follow suit

Wang, who is the Chinese government's top diplomat and state councillor, also said in another statement that China's door would always be open to the USA for trade negotiations, but would not accept any unequal agreements.

Yesterday, more than 170 shoe companies and retailers, including Nike, Foot Locker, and Under Armour, warned in an open letter to President Donald Trump of "catastrophic" consequences if new proposed tariffs on some US$300 billion in Chinese goods takes effect. "We can produce targeted products for the Chinese market in China, which saves for duty and other costs".

The world's two largest economies have escalated tariff increases on each other's imports after talks broke down to resolve their dispute, and the acrimony has intensified since Washington last week blacklisted Chinese telecom equipment company Huawei Technologies Co Ltd.

Five days later, the U.S. government temporarily eased trade restrictions, allowing the Chinese firm to buy American-made goods to maintain existing networks and provide software updates to existing Huawei headsets.

Companies around the world are scrambling to comply with the United States blacklist, which would prevent them from supplying American technology components or software to Huawei.

The moves came a day after major Japanese and British mobile carriers said they would delay releasing new Huawei handsets, upping the pressure on the world's second-largest smartphone manufacturer.

While China has not said whether or how it may retaliate to the measures against Huawei, state media have taken an increasingly strident and nationalistic tone. "It is just a normal Chinese private company", he said.

"So obviously, we want those countries to get along".

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Chinese President Xi Jinping has said this week that his country must prepare for a long trade war with the USA, citing the Mao Zedong-led communists' long struggle for victory in the Chinese Civil War against the Kuomintang.

"The trade tensions between China and the USA are real, and the United States is Australia's number one investor, and China is our number one trading partner".

"We value our close relationships with our partners, but recognise the pressure some of them are under, as a result of politically motivated decisions", a Huawei spokesman said.

This week, Chinese President Xi Jinping urged people to prepare for "a new Long March", evoking the patriotic spirit of the 1934-36 route march of Communist Party members fleeing a brutal civil war to a remote rural base, where they re-grouped and eventually took power in 1949. Of the almost 250 respondents to the survey, which was conducted after the latest round of USA and Chinese tariffs, nearly three-quarters said the levies were hurting their competitiveness.

It said 40.7% of respondents were considering relocating or had relocated manufacturing facilities outside of China.

Of the nearly 250 respondents to the survey, which was conducted after China and the United States both raised tariffs on each other's imports earlier this month, nearly three-quarters said the impact of tariffs was hurting their competitiveness.

The footwear companies who signed the letter, including Clarks, Dr Martens and Converse, claim that while the average United States tariff on footwear is 11.3 per cent, in some cases it can reach as high as 67.5 per cent.

The Footwear Distributors and Retailers of America (FDRA) notes that footwear in the U.S. - 99% of which is imported - is already subject to levies far higher than the average for imported consumer goods.

  • Sonia Alvarado