August 25, 2019

China Summons Tech Giants to Warn Against Cooperating With Trump Ban

The meetings also included the semiconductor makers Arm of Britain and SK Hynix of South Korea.

Dominic Carr, a Microsoft spokesman in Seattle, declined to comment on the meeting, as did Phil Hughes, a representative for Arm in Austin, Tex., and Dave Farmer, a spokesman for Dell in Hopkinton, Mass.

Representatives for Samsung and SK Hynix didn’t respond to requests for comment.

The breakneck unraveling of the world’s most important trade relationship has left companies and governments around the world scrambling. While the dispute had already been nettlesome for Chinese-U.S. relations, the sudden ban on Huawei last month caught many by surprise, raising the stakes by striking at the heart of China’s long-term technological ambitions.

Now, each of the two superpowers appears to be crafting new economic weapons to aim at the other. What was once a fraught, but deeply enmeshed, trade relationship is threatening to break apart almost entirely, raising the specter of a new geopolitical reality in which the world’s two superpowers would compete for economic influence and try to freeze each other out of key technologies and resources.

“This is now extremely delicate because the Trump administration, through its brinkmanship tactics, has destabilized the entire relationship, commercial and otherwise,” said Scott Kennedy, a senior adviser at the Washington-based Center for Strategic and International Studies who studies Chinese economic policy.

The meetings this week were led by China’s central economic planning agency, the National Development and Reform Commission, and attended by representatives from its Ministry of Commerce and Ministry of Industry and Information Technology, who addressed their remarks to a broad range of companies that export goods to China, according to the two people familiar with the gatherings.

Article source: https://www.nytimes.com/2019/06/08/business/economy/china-huawei-trump.html?emc=rss&partner=rss

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