China announced it will establish a non-reliable entity list targeting foreign companies which harm the “legitimate rights and interests” of Chinese groups, ratcheting up tensions between the US and China.
Bloomberg reports China will set up a mechanism listing foreign enterprises, organizations and individuals that don’t obey market rules, violate contracts and block, cut off supply for non-commercial reasons or severely damage the legitimate interests of Chinese companies, Ministry of Commerce spokesman Gao Feng said. “Necessary measures will be taken” against those on the list, he said, adding that specifics would be released soon.
Companies that violate market rules will be added to the list, according to the statement. Other targets include firms that block supplies to Chinese companies for “non-commercial reasons” or otherwise damage their interests.
The exact details of the plan will be announced soon, the statement added.
The move to establish a blacklist comes after the United States hit Huawei with an export ban, effectively barring US companies from doing business with the smartphone and telecom equipment maker.