China accuses US of plot to 'colonise global business' by targeting Huawei

Natasha Bernal
Huawei, like other Chinese manufacturers still relies heavily on imported chips and other hardware - AP
Huawei, like other Chinese manufacturers still relies heavily on imported chips and other hardware - AP

Chinese state media has accused the US of seeking to "colonise global business" by targeting telecom equipment giant Huawei and other Chinese companies with sanctions.

Chinese Foreign Ministry spokesman Lu Kang accused American politicians of "fabricating various lies based on subjective presumptions and trying to mislead the American people".

The state-owned China Daily newspaper said US concerns about Chinese surveillance equipment maker Hikvision were for the self-serving aim of claiming the "moral high ground" to promote Washington's political agenda.

"In this way, it is hoping to achieve the colonisation of the global business world," the newspaper said.

Activists have urged the US to sanction China over repression of members of Muslim ethnic minorities living mostly in the northwestern region of Xinjiang.

Hikvision's technology has been used in the region, where an estimated one million people are being detained in re-education camps. The New York Times has reported the company might be placed on the Commerce Department's "entity list," severely restricting its ability to do business with US companies.

That would be in addition to new restrictions on sales of computer chips and other components to companies like Huawei.

The US government added Huawei to its entity list last week following longstanding concerns over the closeness of the company to the Chinese government. US officials have warned that the company could be compelled to conduct espionage through its device on behalf of the government, an allegation that Huawei spokesman have repeatedly denied.

Microsoft has now restricted Huawei's access to its services. The company removed listings for Huawei laptops from its online store, preventing customers from ordering the items. Searches for Huawei products on the site returned no results.

The US sanctions on Huawei were softened last week with a 90-day grace period allowing companies such as Google and internet providers to work with the business to keep devices online.

The Trump administration has imposed 25pc tariffs on $250bn (£197bn) in Chinese imports and is preparing to extend those duties to another $300bn worth - virtually all the goods America buys from China.

China has raised tariffs on $110bn of US products and has said it's prepared to do more to defend its national interest.

US President Donald Trump said earlier this week that Huawei could be part of a trade deal, despite describing the company as "very dangerous".