China prepares corporate hit-list in face of new tariffs on US imports

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China prepares corporate hit-list in face of new tariffs on US imports

On Friday, the 31st of May 2019, Beijing had threatened to unveil an unexpected hit-list of “unreliable” foreign groups, firms and individuals, which could harm the interest of Chinese companies, while China’s retaliatory tariff on US imports worth of $60 billion took place by Saturday (June 1st) midnight and United States’ sea-ports had also begun to collect 25 percent additional tariffs on Chinese imports.

Although, the Chinese Commerce Ministry did not mention any particular company or country, yet the threat would likely to deepen the trade tension further amid Huawei blacklisting by Trump Administration, in a bid to throw the world’s largest telco gear maker out of global market.

According to the Chinese Commerce Ministry statement released on Friday (May 31st), Beijing’s list of unreliable entities including companies, groups of individuals would be applying to those who had been breaching market rules and violating the spirit of contracts and blocking supplies to Chinese companies for non-commercial reasons.

Besides, the sanction would also be applied to those, who could “seriously damage the legitimate interests and rights” or Chinese companies alongside pose a threat to China’s national security. Following the last round of trade negotiation that concluded prematurely on May 10th following Trump’s hike of China tariff to 25 percent from a prior 10 percent, no talks had been scheduled so far, however, US President Donald Trump was expected to meet his Chinese counterpart Xi Jinping over a G-20 summit, scheduled to take place on June 28th-29th in Japan.