(Yicai Global) April 24 -- The US sanctions may follow a new wave, targeting China's high-end communications companies and network platforms including Huawei Technologies Co., Xiaomi Inc. and Alibaba Group Holding Ltd., warned China’s former vice minister of commerce.
Such companies must have a sense of urgency, a sense of crisis, and even preparations for the battle, Wei Jianguo told CRI Online, China Radio International’s online news outlet, on April 21 when commenting on the latest US ban on ZTE Corp., Chinese telecoms equipment maker.
The ZTE incident is an upgraded version of the US trade war with China, Wei said. The US first targeted bilateral trade and it now targes China’s high-tech industry, so the ban on ZTE cannot be regarded as an isolated and incidental case, he added. The US wants to completely deter China’s independent innovation capability in the trade war through this blow on ZTE. This is the essence of the issue, Wei believes.
The US will introduce more measures as a next step, Wei expects. ZTE should be prepared to deal with it, and China needs to be prepared, he said. China's semiconductor companies and radio communications industry could be affected by these sanctions.
The US sanctions under the pretext of protecting intellectual property and national security anot only hit Chinese industries but also business of seven or eight US firms which are suppliers of ZTE, Wei said.
US president Donald Trump challenges China’s multilateralism with unilateralism and challenges globalization with trade and investment protectionism, Wei said, which will have a disastrous impact on global information technology, communications, semiconductor, wafer and chip industries including Japan, South Korea, Singapore, Malaysia, Taiwan and other countries and regions.
If the US does not admit its mistakes and lift the ban on sales, China will fight to the end, Wei said. US sanctions on ZTE cannot deter China. This is China's attitude, which is welcomed globally, he added.
Editor: Mevlut Katik