China Threatens to Add Apple, Other US Companies to 'Unreliable Entity List'

china flagChina could put Apple on an "unreliable entity list" alongside other U.S. companies, in a series of punitive countermeasures the country is prepared to take against U.S. moves to block shipments of semiconductors to Huawei, claimed a report over the weekend.

According to the Global Times, the Chinese government's mouthpiece, the list would be a first step toward launching a series of investigations and imposing restrictions on U.S. companies such as Apple, Qualcomm, and Cisco.

"China will take forceful countermeasures to protect its own legitimate rights," if the US moves forward with the plan to bar essential suppliers of chips, including Taiwan-based TSMC, from selling chips to the Chinese tech giant, the source told the Global Times in an exclusive interview.

The measures include adding related US companies to China's "unreliable entity list," imposing restrictions on or launching investigations into US companies like Qualcomm, Cisco and Apple according to Chinese laws and regulations like Cybersecurity Review Measures and Anti-monopoly Law, and suspending airplane purchases from Boeing, said the source.

According to comments made last year by a Chinese ministry of commerce official, once a company is added to China's "unreliable entity list" it would face necessary legal and administrative measures and the Chinese public would also be warned against dealing with it to reduce risks.

Beijing's latest tit-for-tat threat comes after the U.S. commerce department announced rules last week that limit U.S. companies from supplying semiconductors, parts, and processor designs to Huawei and its affiliates. The rules also apply to third-parties if they know they will eventually be used in Huawei products.

The move prevents Taiwan-based TSMC from purchasing U.S. supplies for chips that are used in Huawei phones. Nikkei reported on Monday that TSMC has already moved to stop new orders from Huawei, although TSMC told Reuters the reports were "purely market rumor."

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Tag: China

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Top Rated Comments

Hazmat401 Avatar
54 months ago
Apple is really in a tight spot here.... it’s time to bring manufacturing home... back to America
Score: 41 Votes (Like | Disagree)
clayj Avatar
54 months ago
Folks, the manufacturing does not ALL have to come "back" to the USA. (Much of it was never here in the first place.)

The important thing is that it NOT be in China. Move it to Taiwan, India, Mexico, central Europe, etc. If some comes to the US, that's great.

But we should no longer have to rely on China for ANYTHING. You didn't see the US relying on the Soviets for anything during the Cold War, did you?
Score: 40 Votes (Like | Disagree)
btrach144 Avatar
54 months ago
We don’t need China. Let’s move away from them.
Score: 38 Votes (Like | Disagree)
spyguy10709 Avatar
54 months ago

Apple is really in a tight spot here.... it’s time to bring manufacturing home... back to America
Every single time this topic comes up, there's some armchair president/CEO/quarterback that proclaims that US-manufacturing will solve Apple and America's woes.

Just *assembling* the iPhone is a menial task which will not provide good jobs. Relatively few laborers here in America put up with a high-quality, easy manufacturing jobs like putting automobiles together. Make that a precision (1/100ths of an inch), repetitive task? Yeah. No. Not when you can make more driving Uber, waiting tables, or working retail.

The entire smartphone supply chain from battery manufacturers, to display manufacturers, to the producers of the raw aluminum and steel are all located in Shenzhen, or across Asia (SK in the case of Samsung's AMOLED displays used in the Pro phones). Who, exactly, benefits from Apple shipping raw materials and components to have some American screw them together? Nobody.

Our economy moved away from manufacturing from the 1950s-present because it's low value, low skill work.
Score: 32 Votes (Like | Disagree)
tridley68 Avatar
54 months ago
Time to tell China to take a hike break all ties with them and bring manufacturing back home to the states.
Score: 21 Votes (Like | Disagree)
otternonsense Avatar
54 months ago
I hope that will convince Tim to quit the grovelling subservience just to coax the Chinese pockets and to also diversify Apple's supply chain.
Score: 19 Votes (Like | Disagree)