China Will 'Nuke Bomb' US Companies in Response to Huawei Sanctions

(Photo : Photo: Unsplash/Robin Worrall)

The continuing row between the US and the Chinese government may lead China to 'nuke bomb' US companies as sanctions against Huawei is still happening.

Beijing warns the US that their big companies like Apple, Cisco, also Qualcomm need to keep the Chinese market, and they will be blacklisted.

Retaliation for Trump's move against Huawei

Next to come, according to the Chinese statement, will be restrictive rules and investigations to be done, as per The Global Times. All these counter moves are the result of President Trump's crusade to stop shipping parts needed for Huawei mobile phones.

The result is razing these firms to the ground and make their backers pull, as retaliation for embargoing crucial electronic components.

It is called a 'Nuke bomb' by analysts. Newsweek confirmed that the CCP will not buy Boeing planes as well, to dig deeper into American companies.

He Weiwen said that these countermeasures will teach the US to ask any favors, after their actuation against a Chinese company, which he told the Global Times. The recent declaration by the US Department of Commerce to set new rules on the sale of electronic components to a foreign company, like Huawei.

One claim is the intentional move to hinder Huawei from controlling the market. The US is making the move to lessen China's trading capacity. Rules for exporting are getting amended so that electronic components will be out of reach, companies like Huawei will have a hard time getting US software and tech.

A warning was issued citing that Apple, Cisco and Qualcomm are dependent on China to earn more revenue for the US companies.

New info has been revealed that Apple has made moves to continue in China, as cited in the Washington Post.

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'Nuke bomb' may cause billions of losses

Chinese demands even called for hiding a Taiwanese flag on the keyboard, and other references to Hong Kong protests too. The editorial commented that Apple accepted it, as cost of operation in China and the Chinese need a big US firm.

The biggest loser in the row will be US chip-making firms that will lose billions with a side effect of obliterating Huawei, which needs the US more. As Washington and Beijing trade barbs which will cause a massive disruption of tech industries, Huawei is caught in a political feud and it could wipe out the most successful Chinese firm.

If Washington refused to supply Huawei with electronic components, then the Chinese company will be at a disadvantage. The Chinese firm has chips of its own, thought the firms they contract to use American equipment.

Many other chipmakers like the as Taiwanese chipmaking giant TSMC are dependent on US components. An expert said that Huawei is like a sitting duck for all intents in an email when requested for comment.

For the most part, China has failed to make its sources but choose to be dependent instead. Now, the Chinese telecom has few options to go for, like SMIC but less advanced than TSMC.

Accusations that the US is unfair and bends principles of the market, with these new impositions. Whatever happens, as the US squeezes Huawei, the result is a destructive tsunami in the industry.

Blacklisting Huawei has caused a low demand, with their new mobiles without require services. Despite the nuke bomb threat on US companies, it seems Huawei is the real victim.