To us laymen who drink bubble teas, we only know that trade wars mean taxes: Country A put tariffs (taxes) on goods imported from Country B, so Country B suffers. Country B then counters with their own tariffs, and Country A suffers.
In the end, the economy suffers, and one side would have to give in, or we all suffer.
But no one said anything about banning companies.
And it seems like this ongoing trade war would escalate to that.
Started With Huawei
Unless you’ve been living under a rock, you’d know about the Huawei ban.
Before you associate that with the trade war, you’d have to know this: while there’s an ongoing trade war between China and the US, Huawei was banned not because of the trade war, but because they allegedly posed a security threat due to their alleged espionage.
Simply put, banning Huawei isn’t part of the trade war; at least, on paper.
However, people are associating it with the trade war since Huawei’s a China company and US is…US.
So far, China’s not officially responded to that, since a response would show that they’re helping a third-party company. But now, the sleeping giant has awakened.
And I ain’t talking about Huawei. I’m talking about China.
Lest you’re not aware, ever since the Huawei ban, Huawei’s CEO has stepped up and told the media that he didn’t support China retaliating back. In fact, he mentioned that he would “protest” if China retaliates and ban Apple, a US company.
While there’s no mention of Apple being blacklisted, China is ready for its countermeasures.
Huawei was banned as it has been included in the US’s “Entity List”, in which companies in the list must apply for a licence from the US Bureau of Industry and Security.