China’s entity list sends clear signal

Source:Global Times Published: 2019/5/31 20:09:26

China's Ministry of Commerce announced on Friday that the country will release its non-reliable entity list. Foreign entities, individuals and companies that block and shut the supply chain, or take discriminatory measures over non-commercial reasons, and when their actions endanger the business of Chinese companies will be included in the list.

The US recently put Huawei on its entity list and threatened to  blacklist more Chinese high-tech companies. Meanwhile, some US companies have taken part in cutting supplies to and blocking Chinese companies. China's non-reliable entity list comes out under this background.

The first signal of this move is that China will never yield to US pressure and China will take active countermeasures instead of reacting passively under US suppression.

The move also shows that China is improving laws and regulations in its contention with the US, and China can take precautions ahead of any US crackdown against Chinese enterprises.

The entity list is a long-term endeavor. Its deterrence will help protect Chinese companies. But China will stick to its commitments of opening up. The country will not discriminate  against foreign companies and will not weaken China's opening-up efforts. Rather, it will make rules clearer and draw a more certain line of relations between foreign companies and the Chinese market. This is another signal the entity list conveys.

China will not make unprincipled compromises in the wake of unreasonable demands of the US and will take countermeasures when necessary. But the trade war will not affect China's attitude toward foreign companies. It will continue to open its market to US companies. This is China's existing policy and also a consensus of Chinese society. 

Resolve and calmness are two sides of the coin of determination in the eyes of the Chinese people. The US side has been saying that high tariffs have brought a destructive impact on China and foreign companies are leaving China. China's response is to calmly signal that it may restrict rare-earth exports to the US and announce the establishment of the non-reliable entity list. The prosperity of China can't be impeded by US imposing higher tariffs. Washington's arrogance is merely the bubble in the air.

China is ready for a long-term trade battle with the US. Compared to last year when the US started the trade war, the Chinese public is more supportive of the government taking tough countermeasures. More and more Chinese people now believe that the real purpose of some Washington elites is to ruin China's development capabilities, and these people have hijacked the US' China policy.

Peace-loving Chinese people do not want to see a worsening relationship with the US, nor will they want to be involved in a long trade battle with the US. But they also know that fair negotiations can only be achieved with a resolute fight. To safeguard China's right to develop and strive for a fair and just international environment for China's development, Chinese society will fight to the end of the trade war. 

Posted in: EDITORIAL

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