China Hints at Retaliation After US Issues EO, Adds Huawei to Entity List

After the Trump administration issued an executive order and announced export controls that targeted Chinese technology firm Huawei, China hinted at retaliation, saying it will take “necessary measures to safeguard” its companies. During May 16 press conferences, China’s Ministry of Commerce and Ministry of Foreign Affairs denounced the U.S.’s decision to add Huawei Technologies to the Commerce Department’s Entity List and criticized the executive order President Donald Trump signed on May 15.

The EO allows the U.S. to ban telecommunications gear and services from “foreign adversaries” that pose a risk to U.S. national security, the White House said in a statement. “The Chinese side has repeatedly stressed that the concept of ‘national security’ should not be abused and should not be a tool for promoting trade protectionism,” said a China Commerce Ministry spokesperson, according to an unofficial translation. “It is hoped that the countries concerned will respect the market rules and create a fair, transparent and predictable business environment for enterprises including Chinese enterprises.”

China’s Ministry of Foreign Affairs was also critical of Commerce’s decision to add Huawei to its blocked entity list, saying it opposes the “act of any country to impose unilateral sanctions on Chinese entities based on its domestic laws, and to abuse export control measures while making ‘national security’ a catch-all phrase.” Foreign Affairs said it urges the U.S. “to stop its wrong practices, create conditions for Chinese and American companies to carry out normal trade and cooperation, and avoid causing more damage to bilateral economic and trade ties.”

As of press time, neither Chinese ministry mentioned specific steps China will take to retaliate, but Foreign Affairs stressed “we are definitely entitled to take necessary measures to safeguard" Chinese companies’ "legitimate rights and interests.”