Beijing counter-strike over US sanctions list

Beijing counter-strike over US sanctions list
Huawei has been targeted by Washington over fears that it could be used to infiltrate US security networks. (Shutterstock)
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Updated 20 September 2020

Beijing counter-strike over US sanctions list

Beijing counter-strike over US sanctions list
  • Foreign enterprises in the firing line under planned punitive measures

BEIJING: China said on Saturday it had launched a mechanism enabling it to restrict foreign entities, a much-expected move seen as retaliation to US penalties against Chinese companies such as telecom giant Huawei.

An announcement by the Ministry of Commerce did not mention any specific foreign entities, but broadly spelled out the factors that could trigger punitive measures, which may include fines, restrictions on import export business or investment in China, and the entry of personnel or equipment into the country.

It covers “foreign enterprises, other organizations and individuals,” it said.

The launch of the “unreliable entities list” ups the ante in the escalating commercial fight with the Trump administration, which has used its own “entity list” to bar Huawei from the US market on national security grounds.

The announcement also came a day after the United States ordered a ban on downloads of popular video app TikTok and effectively blocked the use of the Chinese super-app WeChat on similar grounds, which prompted a threat by China to strike back.

Beijing would consider sanctions on entities whose activities “harm China’s national sovereignty, security, and development interests” or violate “internationally accepted economic and trade rules.”

That language closely tracks wording that Beijing has used to repeatedly denounce US actions against Chinese companies.

The ministry said that if an entity is suspected of violating the provisions, an investigation would be launched under China’s Cabinet, the State Council.

The foreign party in question would have an opportunity to defend its conduct to the Chinese investigators.

Chinese enterprises that rely on business with the targeted organizations also will be allowed to apply for exemptions from any ban on doing business with them, as the US system allows.

The US and China are engaged in an escalating trade battle centered on technology.  Huawei, the world’s leading supplier of telecoms networking equipment, has been a particular target.

Washington has used its own entity list to essentially ban Huawei from the US market and prevent American companies from doing any business with it or with Huawei-affiliated organizations.

The US says Huawei could be used by Chinese state security to infiltrate communications networks.

China’s government and Huawei deny that, saying the US has offered no evidence supporting the claim.

Under a US order on Friday, the Tencent-owned WeChat app would lose functionality in the US from Sunday. TikTok users will be banned from installing updates but could keep accessing the service through Nov. 12.

China has for years blocked or restricted leading US tech companies from operating in its market, including Facebook, Twitter and Google.


Saudi private sector rebounds with growth at 10-month high

Updated 04 December 2020

Saudi private sector rebounds with growth at 10-month high

Saudi private sector rebounds with growth at 10-month high
  • Steep rise in sales and growing business confidence spark jump in purchasing, hiring activity

RIYADH: Business activity in Saudi Arabia has risen to its highest level since January this year, showing the Kingdom’s economy is beginning to overcome the worst effects of the coronavirus pandemic.

According to IHS Markit’s Purchasing Managers’ Index (PMI) Survey, the acceleration of output growth in the Saudi economy in November was driven by a steep rise in sales and strengthening business confidence.

The survey found that input purchasing rose, while employment growth also returned for the first time since January. Input cost inflation also quickened, leading to a stronger increase in average output charges.

The index has now registered above the 50.0 no-change mark for three months in a row, highlighting a sustained recovery after the economic downturn due to the pandemic.

The Saudi PMI rose to 54.7 in November from 51 the previous month — the strongest improvement since January. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared with the previous month, and below 50 an overall decrease.

Both domestic and foreign sales rose last month, marking only the second upturn in new export orders since February.

Business confidence for the year ahead also improved notably during the month. In particular, firms were encouraged by the Saudi government’s easing of lockdown curbs and news of a breakthrough in the development of a vaccine.

Accelerated rises in output and new orders led Saudi firms to sharply expand purchasing activity during November. In addition, hiring activity turned positive and a number of companies linked increased employment to rising demand.

Commenting on the latest survey, David Owen, an economist at IHS Markit, said: “A third successive rise in the Saudi Arabia PMI pointed to an economy getting back on its feet in November. Supported by output and new business growth reaching 10-month highs, the data suggests a strong end to the year for the non-oil private sector. Notably, employment started to rise, while business confidence strengthened in the wake of encouraging vaccine news and sharper demand growth.”

Saudi economist and financial analyst Talat Zaki Hafiz told Arab News: “The improvement is due to many factors, such as the reopening of the market with the ease in lockdown and, finally, the lifting of the curfew. The return to normality has had a significant impact on private sector performance.”

Hafiz added: “Things will get much better by the next year. We have also noticed an improvement in oil prices recently and this will improve things significantly.”