China has warned against further retaliation after telecom giant Huawei was barred by the Trump administration from the US market. Taking strong note of the decision taken by the US President Donald Trump to bar American companies from installing the foreign-made telecom equipment posing a national security threat, Beijing has vowed to safeguard the rights and interest of its business firms.
On Wednesday Donald Trump signed an executive order to bar US firms from installing the foreign-made telecom equipment which poses a national security threat. China has accused the US of taking the decision to purposely ban Huawei from US networks. Reacting sharply to Trump's decision, Chinese Foreign Ministry spokesman Lu Kang said: "China will defend its business' rights and interests. As for China's view on the executive order (of Trump), we can say that nobody says this as a constructive and friendly gesture." The US has raised apprehensions on Huawei-the world's largest provider of telecommunications equipment for a possible spying risk to Western infrastructure networks.
The decision to restrict Huawei comes amid a fresh round of trade war between two of the world's largest economies. The effect of the trade war can also be felt in the Indian markets, as the overseas investors offloaded over Rs. 1142 crore local shares on Wednesday trade. Lu said: "We have noted the US Department of Commerce decision. China always asks its business to comply with laws and regulations in export control and fulfill its international obligations. We always ask them to abide by other country's laws regulations in their overseas business."
He further went on to add: "But we are against other countries' unilateral sanctions based on domestic law and practices that abuse export control measures. We urge the US to stop such practice and create favorable conditions for business cooperation. China will take necessary measures to safeguard Chinese business' legitimate rights and interests."
Apparently, Huawei is fighting a major legal battle against the US to restrict the extradition of its CFO Meng Wanzhou, who was arrested in Canada for violating American sanctions against Iran. Meng, the daughter to Huawei owner Ren Zhengfei, has been put behind the bars for her role in misleading banks about the company's business dealings. However, Huawei has argued that the Trump administration is purposely targeting the company as it has emerged as a major challenge for the next generation 5G telecom technology.