US-trade-war-with-China

The US-China trade war is far from getting over. In fact, it’s only getting fueled by the moves each of the countries is making or planning to make. The US government aimed at China by blacklisting 67 Chinese companies which would restrict them from doing business with any of the US-based companies. The retaliation from China was certain and the country is preparing to give the US a taste of their own medicine.

Similar to the US, China may soon come up with its own list of companies that have been deemed “unreliable”. It is expected that the country will ban all those companies based in the US, Britain and Japan to operate or have any kind of business relationship with any Chinese companies.

The move comes after the US banned Huawei as a part of 67 companies, which has refrained many US and foreign companies, including Google, from doing business with China’s major mobile manufacturer. The biggest blow came in a form of Android license, revoked by Google, that has made Huawei almost nonexisting in smartphone space.

Huawei, however, has reportedly gird up their lions in preparation for the tough time ahead. The company has beefed up the development process of its home OS Hongmeng to counter Android. While there is no exact date is announced yet, it is expected that the new Huawei OS will be ready for debut by the end of this year.

The reported China’s list will consist of “unreliable” foreign companies, individuals and organizations.

Quite recently China increased duties on 5,000 US products to as high as 25%, which will come into the effect from June 1, 2019. The move comes as a reprisal to President Trump’s decision to punish China with increased duties on Chinese goods worth $200 billion, earlier this month.

The ban on Huawei has apparently forced many other countries to cut their ties as well. Japan recently announced that it is working on its 5G network with companies like Nokia and Ericsson instead of Huawei who was one of the major suppliers of the 4G equipment for the country.

China is also planning to restrict exports of rare earth minerals to the US. It is definitely a big blow to the US considering these minerals are used in high-tech electronics, automobiles and also defence as well. With around 35% of world reserves, China is the largest supplier of these rare minerals. Neodymium is one of the rarest minerals that is mostly used in the headphone companies and the US doesn’t have any alternative to replace it yet. But, it’s too early to panic for the US and other countries who rely on China for the supplies of such rare minerals. China will only trigger it if the trade war keeps on getting momentum and get too deep.

Although China’s commerce department has come up with a list to restrict trade with the USA, it is not the first time when such a ban would be imposed on the US companies. China has an itching history of banning top tech giants of the US, including Facebook and Google.

The US government claims that Huawei is penalised for getting involved in activities related to espionage, but China is of view that the move was part of the ongoing trade war.

The US President Trump has indicated that the ban on Huawei could only be lifted if China agrees to make a trade deal. It’s clear that President Tump is using Huawei as leverage to cut a deal with China.

As of now, China is all set to shut doors on many US companies and individuals and that will only result in the increasing loss of billions of dollars for both the countries. Where this war will lead up to and who will emerge victorious between the two countries or if would see a third winner, only time will tell.

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