US blacklists Huawei; China fears trade war escalation

United States seems have given death penalty to China-based Huawei Technologies and this has raised tensions between the two countries to a level of hostility akin to a tech Cold War.

Trump administration blacklisted Huawei as well as its 67 affiliates of the company across 26 countries.

Trump administration placed the company Tuesday on Commerce Department’s Entity List. With this the problem for Huawei has grown several folds as one in four of its suppliers is in US.

According to Eurasia Group analysts without US suppliers the company would not be able to conduct routine maintenance and hardware replacement.

It is said the Trump administration is directly attacking the Chinese government and situation of Huawei is much more adverse than tariffs imposed on Chinese goods.

More shocking actions are to come between trade war of US and China. Legalization is being worked out to bar selling technology to any Chinese company.

Meanwhile, several US companies feel to leave China, but those are yet to evaluate how they would be treated.