xi trump

The US ban on Chinese tech giant Huawei could trigger a major retaliation by Beijing.
Analysts say China could hit back at US tech giants doing business in the Asian nation, with Apple especially at risk.
One analyst believes the reaction could be so severe that the effect on some US tech companies could be ‘disastrous.’
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A ban on Chinese tech giant Huawei by the Trump Administration could spark a tit-for-tat with Beijing that would turn the heat up on US tech companies, with Apple vulnerable as high-profile target for retaliation, analysts said Wednesday.

One analyst thinks Beijing’s reaction could be ‘disastrous’ for American companies.

The ban on doing business with Huawei was imposed shortly after President Trump’s executive order aimed at “foreign adversaries” in the technology industry. According to the US Commerce Department order, Huawei is now prohibited from buying parts and components from US companies without US government approval.

Huawei has been repeatedly accused of spying and violating US laws. Huawei has denied the accusations, while Beijing has denounced the charges as unfair.

Spying allegations vs Huawei

“This is clearly targeted at China spying via Huawei, something that has not been conclusively proven yet,” analyst Tim Bajarin of Creative Strategies Inc. told Business Insider. “But it represents a ban on a Chinese product in the US that has other ramifications.”

The spying allegations “could be real,” he added. But so is China’s potential reaction.

“China could retaliate by banning US products from the Chinese market using the same pretense, even it may be false,” he said. “A tit-for-tat fight that could be disastrous for any company that sells a lot of goods into China, especially technology-based goods, if they get banned for any reason as part of a Chinese retaliatory move.”

And coming on the heels of the …read more

Source:: Business Insider

      

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