Why hasn’t China responded to the latest US move targeting Huawei

Tram Ho

China prepared to announce a punitive list for US companies after Washington announced an increase in sanctions, tightening export controls on Huawei’s technology giant in May. At the last minute, Beijing changed its mind.

Citing a government source, the South China Morning Post reported that Chinese officials feared the move would backfire and damage the domestic economy.

“The list is almost published. But at the last minute, the decision was retracted and waiting, ”the source revealed.

Beijing’s caution comes from the fear that retaliation will affect economic growth that was inherently precarious after an acute respiratory infection (COVID-19) and its desire to stabilize the flow. investment flows from abroad at a time when many foreign companies seek to reduce dependence on Chinese supplies.

The attitude of mercy was also evident in Prime Minister Ly Khac Cuong’s press conference after the annual congress in late May, when he avoided a tone of confrontation with the United States and called for economic cooperation.

Earlier, after the US announced restrictive orders against Huawei and 33 other Chinese companies, Beijing threatened to publish a list of unreliable entities. The Global Times has an article about China preparing to investigate or order restrictions on some US companies such as Qualcomm, Cisco and Apple, as well as stop buying Boeing aircraft. China contends that these companies damage the interests of Chinese businesses and pose a national security threat.

Vì sao Trung Quốc chưa đáp trả động thái mới nhất của Mỹ nhắm vào Huawei - Ảnh 1.

A FedEx Express aircraft at Hong Kong International Airport. Photo: wsj.com

FedEx courier company is one of the first US companies in the sights of China. Officials have said they will investigate FedEx after the company was charged with allowing weapons to be brought into China.

However, since then, China has remained silent on the entity list. The source explained that Chinese officials completed the list details by the end of last year, but worried that foreign businesses would react and make the Asian nation less attractive to investors.

According to Dan Wang, an analyst at the Gavekal Dragonomics Research Institute, Beijing is not in a hurry to take countermeasures but needs “a balanced approach between public opinion to act aggressively and stabilize the ground.” economically, maintaining foreign investment ”.

Government sources said China needed to improve relations with the rest of the world by lowering its voice, restoring its reputation after the COVID-19 pandemic, and taking firm steps to regain heart. News from foreign companies.

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Source : Genk