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Huawei's defiant spinning top says Chinese vendor can cope with renewed US sanctions

Muppet Boss

>>"How dare you not allow me to play in your garden! Just because you're not allowed to play in my garden, you've no right to deny me access to your garden!"

>Actually I was talking about China's locals only policy. If you want to do business in China, you have to hand over all your IP, you have to team up with a local firm with majority Chinese shareholders and they can take whatever they want and run with it. And if the Chinese governments decides they want to give a boost to a local firm then they can kick you out without warning, and hand over all of your IP to the local firm.

Does this mean that Apple had to hand over its IP, source code and lawyers' souls to sell $50bln worth of iThings into China every year? Do WOFE not exist in China? Is the "negative list" not becoming smaller year-on-year?

Preferential treatment of local businesses is nothing new in any country, however large US enterprises are notorious for their gangster methods abroad and getting away with it at home. What could be the punishment for financially aiding a terrorist organization, smuggling lethal weapons to the terrorist organization and assisting it in smuggling drugs if you are a large US banana company? A fine amounting to the monies paid out to the terrorists ($1.7mln) and 8 employees wanted by a foreign state for terrorism fired without criminal charges, denied extradition.

What about having a large competitor such as Huawei and try to put them out of business worldwide by denying them supply of essential components to disrupt their manufacturing chain? The sanctions seem to be carefully targeted to disrupt Huawei's worldwide sales, not just in the US' own garden.

China has a strong way to retaliate in the short term by restricting exports and/or re-exports of rare earths to US-owned companies on national security grounds however it is a double-edged sword since it would further disrupt global supply chains and lose China much goodwill from the global manufacturing community in the same fashion the US lost much goodwill by their disruptive actions. Surely, not only Huawei is looking to be able to replace US-tainted components now.

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