"Beijing put big tech on notice last week, threatening 'dire consequences' if companies such as Microsoft, Dell and Samsung comply with the Trump administration's ban on sales of key American technology to Chinese companies, according to the New York Times. Any companies which cooperate with the new policy 'could face permanent consequences,' according to the Times. Chinese authorities also suggested using DC lobbyists to resist the government's moves.
China - which is already ditching Microsoft Windows for military applications - held a flurry of meetings on Tuesday and Wednesday after tech firms for discussions amid the backdrop of Beijing's planned blacklist of blacklisting of US firms on an "unreliable entities list."
Also participating in meetings were semiconductor companies Arm of Britain and SK Hynix of South Korea, according to the report, which cites a KPMG estimate that around 60% of all semiconductors sold are connected to China's supply chain, so maybe by that new computer sooner than later.
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. -New York Times
"This is now extremely delicate because the Trump administration, through its brinkmanship tactics, has destabilized the entire relationship, commercial and otherwise," according to China expert Scott Kennedy - senior adviser at the Washington-based Center for Strategic and International Studies who studies Chinese economic policy.
More broadly, the warnings also seemed to be an attempt to forestall a fast breakup of the sophisticated supply chains that connect China’s economy to the rest of the world. Production of a vast array of electronic components and chemicals, along with the assembly of electronic products, makes the country a cornerstone of the operations of many of the world’s largest multinational companies. -New York Times
"The Chinese government has regularly resorted to jawboning multinationals to try to keep them in line when there are disputes between China and others that could lead these companies to reduce their business in China."
at https://www.zerohedge.com/news/2019-06-08/china-threatens-dire-consequences-if-tech-giants-comply-trump-ban
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