The US and China have been engaged in verbal war since forever and their relationship seems to behave further embittered on Wednesday, 3rd June. US Commerce Department imposed restrictions on 33 Chinese firms and institutions on Wednesday which would be put to effect from 5th June, Friday. This particular step by the United States will not go down well for Beijing and happens to be a major push for restrictions on many economic companies in China.
Only last month the agency has added some Chinese firms to their economic blacklist for aiding China in spying on the minority group of Uighur Muslims as well as having a link to China’s military and weapons for mass destruction. This is an attempt by Trump’s Government to cut down companies that would aid China in causing mass destruction and forging deadly weapons, as well as rebuke Beijing for its treatment of minority Muslims in the region of Xinjiang. The House of Representatives voted in favor of the sanctions against China last week.
What do these restrictions mean? The Commerce Department clarified seven companies and two institutions were accused to be “complicit in human rights violations and abuses committed in China’s campaign of repression, mass arbitrary detention, forced labor and high-technology surveillance against Uighurs.” Under allegations of supporting acquirement of material to be used by the Chinese military, two dozen companies including Government organizations and
commercial institutions were added to the blacklist of 33 firms by the US Commerce Department This move by the US will ensure restrictions on the sale of US goods and materials to these Chinese firms and institutions.
Not only that, any goods produced abroad with US material, technology, or content will be barred from sale to these firms. Although the companies in question can apply for the license of sale of these products, there would be a denial by the US they would have to overcome. US chip companies like Intel Corp and Nvidia Corp have heavily invested in Chinese firms in question which deal with face recognition and Artificial Intelligence. Due to the restriction on the sale of material by the US to these firms, they would take a big hit.
China has always focused on being a Superpower and every country knows of that. With the US at opposition to China’s motives, it is getting tougher for them to reach their goal, although not impossible. While earlier countries used weapons to gain power, China has embarked on its plan of dominating the economy of the world and establishing its position.