Posted on May 31, 2019 (By the Associated Press)
Summary: After U.S. restricts U.S. firms from dealing with Huawei, China to draft own list of ‘unreliable entities’. The Financial Times reported that tech giant Huawei has ordered its employees to cancel technical meetings with American contacts and has sent home numerous U.S. employees working at its Chinese headquarters. The moves come amid growing U.S.-China tensions over trade and technology in which Huawei has been a main target. The FT said a workshop underway at Huawei at the time was “hastily disbanded, and American delegates were asked to remove their laptops, isolate their networks and leave the Huawei premises.” It quoted Dang as saying that Huawei is also limiting interactions between its employees and American citizens. Huawei declined to comment on the FT report. China’s commerce ministry announced that it will establish its own list of foreign enterprises, organizations and individuals it deems to be “unreliable entities” — a possible response to the U.S. blacklist. Entities are “unreliable” if they “fail to comply with market rules, break from the spirit of contracts and block or stop supplying Chinese enterprise for non-commercial reasons, seriously damaging the legitimate rights and interests of Chinese enterprises,” ministry spokesman Gao Feng said at a news briefing. The purpose of the list is to safeguard China’s national security.
Video: https://www.youtube.com/watch?v=rCconxImo5o
Stakeholders and how different organizations can be affected:
US economic growth: Economic growth of US will decrease because China is sending American citizens who are working at Chinese headquarters. Also, the relations between America and China are getting worse which has a huge impact on the economic growth.
China’s economic growth: It will go down as well because America restricts the US firms from dealing with Huawei which is a huge tech company.
Huawei: The profit margins of the company will go down.
World’s economy: China and US are world’s two biggest economies which will affect other countries economies as well.
Workers in Huawei: People who are working in Huawei will be affected as well. Some workers will lose their jobs.
American workers: American people who are working at Chinese Headquarters lost their jobs because China is sending them back to America.
Other tech companies: They will be benefitted because of the restrictions on Huawei in America.
Personal Opinion: I think US should not be doing this with China because China is a huge country not only because of their population but also because of their economy. If US continues doing this to China, US economy will be affected really badly. If this happens common people will be affected and unemployment rates will go up.
Questions: 1)Do you think that American Government should keep the restrictions on Huawei?
2) Do you think China is fair with American employees who are working at Chinese Headquarters?
Economics 12 