China Demands U.S. Withdraw Sanctions On Tech Suppliers
China demand Monday that Washington withdraw export
sanctions imposed on Chinese companies in the latest round of a worsening
conflict over technology, security and human rights.
The foreign ministry accused the Trump administration of
interfering in China’s affairs by adding eight companies accused of playing
roles in a crackdown in its Muslim northwestern region of Xinjiang to an export
blacklist.
Washington also imposed controls on access to American
technology for 24 companies and government-linked entities it said might be
involved in obtaining goods with potential military uses.
The U.S. decision “violated basic norms of international
relations” and “harmed China ’s interests,” said a ministry spokesman, Zhao
Lijian.
“We urge the United States to correct its mistakes, revoke
the relevant decision and stop interfering in China’s internal affairs,” Zhao
said.
The measures announced Friday expand a U.S. campaign against
Chinese companies including tech giant Huawei that Washington says might be
security threats.
Beijing criticized curbs imposed earlier on Huawei
Technologies Ltd. and other companies including Hikvision Digital Technology
Ltd., a supplier of video security products. It has yet to say whether it will
retaliate.
One company cited Friday in connection with Xinjiang is
accused of “engaging in human rights violations,” the Commerce Department said.
The rest are accused of “enabling China’s high-technology surveillance” in the
region.
One of the technology suppliers, CloudWalk Technology Ltd.,
which makes facial recognition systems, said in a statement such “unfair
treatment”will hurt American companies and global development.
China’s fledgling tech industries are developing their own
processor chips, software and other products. But they need U.S., European and
Japanese components and technology for smartphones and other devices, as well
as for manufacturing processes.
The company accused of human rights violations, Aksu Huafu
Textiles Co., said in a statement the U.S. decision “recklessly disregards
facts.” The company said it won’t be affected because any American materials
can be replaced by Chinese sources.
Other companies didn’t respond Monday to questions about how
they might be affected.
The decision to add the companies to the Commerce
Department’s Entity List limits their access to U.S. components and technology
by requiring government permission for exports.
American officials complain Beijing’s technology development
is based at least in part on stolen foreign know-how and might erode U.S.
industrial leadership or threaten the security of its neighbors.
Complaints about Beijing’s technology ambitions prompted
President Donald Trump to raise duties on Chinese imports in 2018, triggering a
tariff war that weighs on global trade. The two governments signed a truce in
January but Trump has threatened to back out if China fails to buy more
American exports.
Other companies cited Friday “represent a significant risk
of supporting procurement of items for military end-use in China,” the Commerce
Department said.
The most prominent name on that list is Qihoo 360, a major
supplier of anti-virus software and a web browser.
On its social media account, Qihoo 360 accused the Commerce
Department of “politicizing business” and commercial research and development.
Companies including Huawei that were targeted by earlier
U.S. sanctions deny they are a threat. Chinese officials accuse Washington of
using phony security warnings to block rising competitors of U.S. tech
industries.
Another blacklisted company, CloudMinds Technology Co., a
maker of internet-linked robots, said all its products “are designed for
civilian use.” It appealed to the U.S. government on its social media account
to “stop this unfair treatment.”
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