China said on Friday May 31st it would issue a blacklist of "unreliable" foreign companies and individuals in retaliation against the US ban on the telecom giant, Huawei, in their escalating trade war, AFP has reported.
The announcement was made a day before Beijing is due to increase tariffs on $60 billion worth of US goods, as China hits back at President Donald Trump’s decision to blacklist Huawei over security concerns.
Earlier this month, the US Commerce Department placed Huawei on an "entity list" on grounds of national security, which prevents its access to US-made components it needs for its equipment. A few days later, a 90-day reprieve was issued.
China's commerce ministry announced on May 31st that it will release its own list of "unreliable entities". “The list will include, "foreign enterprises, organisations or individuals that do not comply with market rules, or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes and seriously damage the legitimate rights and interests of Chinese enterprises," commerce ministry spokesperson, Gao Feng, said. Feng added that the names of the firms and the measures to be taken against them would be released shortly.
China and the US resumed their tariffs battle earlier this month after trade negotiations in Washington reached a deadlock.
China's announcement comes one day after Chinese officials accused the United States of "naked economic terrorism" and of lying about the impact of tariffs on its economy.