China Criticizes US Restrictions on Huawei, Plans to Make Unreliable Entity List Announcement 'Soon'

China’s Ministry of Commerce repeated claims that it will retaliate against higher U.S. tariffs, said it opposed new U.S. measures against Huawei and plans to make an announcement involving its so-called unreliable entity list “soon,” spokesman Gao Feng said at an Aug. 22 press conference, according to an unofficial translation of a transcript from the briefing.

Gao said China is “currently implementing internal procedures” involving its unreliable entity list. He also said China plans to further investigate FedEx after reports surfaced that a FedEx package recently shipped from the U.S. to China’s Fujian province contained a handgun.

China previously opened an investigation into FedEx in June after saying the company “failed to deliver” some packages to Chinese addresses (see 1906030036). The announcement came just after China said it was creating an unreliable entity list in response to the U.S.’s blacklisting of Huawei (see 1905310060).

Gao criticized the U.S.’s decision to add 46 new Huawei affiliates to the Commerce Department’s Entity List (see 1908190039), saying China “resolutely opposes the U.S. side’s practice of using state power to suppress Chinese enterprises for no reason.” Gao said the U.S. move will hurt global supply chains.

“In many fields, Chinese and American companies have formed interdependent relationships in the industrial chain, hitting Chinese companies, and ultimately losing American companies,” Gao said. “It is hoped that the U.S. will correct its wrong practices and treat Chinese enterprises fairly.”

Gao repeated Chinese State Council claims that the country will retaliate with “countermeasures” if President Donald Trump follows through on his 10 percent tariff threat scheduled for December (see 1908150024). “If the U.S. is willing to go its own way, China will have to take corresponding counter-actions,” Gao said, declining to say what those actions would be. He also said the additional U.S. tariffs, if imposed, would have “a serious negative impact on American businesses and consumers” but will have a minimal impact on China.

“The U.S. measures will pose certain challenges to China's exports and economy, but overall, the impact is completely controllable,” he said. “China has the confidence, determination and ability to cope with various challenges and maintain the healthy and stable development of China's economy and foreign trade.”

Gao said Chinese officials plan to speak again with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin “within the next two weeks.”