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China calls on foreign technology companies to ban Huawei's sale: Sources

PEKING (Reuters) – Last week, China asked global technology companies for talks after banning the sale of technology to the Chinese company Huawei Technologies Co Ltd last month in the United States. Two people familiar with the matter told Reuters this Sunday.

FILE PHOTO: A Huawei logo can be seen outside the fence of the headquarters in Shenzhen, Guangdong Province, China, on May 29, 2019. REUTERS / Jason Lee / File Photo

The blacklist of Huawei, the world's largest telecommunications networking equipment maker, is preventing US companies from providing them with many goods and services, as Washington claims they are national security concerns, a potentially crippling blow , which sharpened the trade tensions between the US and China.

Huawei denies that his device is a security threat.

Shortly thereafter, Beijing announced its own list of "unreliable" foreign units. It has also suggested that it will limit US supply of rare earths.

A person of the US software giant Microsoft Corp. said the company's meeting with Chinese officials was not a direct warning, but it was made clear to the company that complying with US bans was likely to lead to further complications for all industry participants.

The company was asked not to take any premature or ill-considered steps until the situation was fully understood, the person said, adding that the tone was conciliatory.

Microsoft declined to comment.

The New York Times reported for the first time on the meetings conducted by the National Development and Reform Commission (NDRC). Large foreign technology companies were warned against complying with a US ban on selling American technology to Chinese companies or possibly threatening the newspaper as having described dire consequences.

The NDRC did not respond immediately to a faxed request for a Reuters opinion.

It is not uncommon for China to call on representatives of foreign and domestic companies, sometimes in groups, to speak out.

A person with another US technology company in China, who was informed by colleagues about the company meeting, told Reuters that the tone was "much softer" than expected.

"No mention of Huawei. No ultimatums. I just asked to stay in the country to contribute to the win-win negotiations, "the person said and declined to be identified by name or company because of the sensitivity of the matter.

"I think they find they currently need US technology and products. Self-sufficiency will take a long time, and then they can kick us out, "the person said.

The New York Times reported that other companies that had been convened for meetings last Tuesday and Wednesday, including the US computer manufacturer Dell Technologies Inc., the South Korean company Samsung Electronics Co Ltd. and SK Hynix Inc. and UK chip designer ARM, which discontinued deliveries to Huawei last month.

Samsung and SK Hynix declined to comment. Dell did not immediately respond to an email request for comments on Sunday, and an ARM spokesman could not be reached immediately.

Regardless, the editor of the Chinese newspaper Global Times said on Saturday that Beijing was preparing to stem some technology exports to the US. In a tweet, Global Times editor-in-chief Hu Xijin said China is "building a management mechanism to protect China's key technologies."

"He added," Once this comes into effect, some technology exports to the US are under control. Hu did not mention named sources in his tweet.The Global Times is a tabloid of the official People's Daily of the ruling Communist Party.

Also on Saturday, Chinese state media broadcaster Xinhua reported that the NDRC was conducting a study to establish a " Last week, Reuters reported that Facebook Inc stopped pre-installing its apps on Huawei's smartphones.

Cate Cadell and Michael Martina reporting in Beijing; min Park in Seoul and Stella Qiu in Beijing, letter and additional Report by Tony Munroe; Edited by Christopher Cushing

Our Standards: The Thomson Reuters Trust Principles.

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