China threatens retaliation after US boycott of chipmakers

Chinese officials have threatened the United States with retaliation following a boycott of Chinese semiconductor firms and products launched by five top American companies. Four main companies, Apple, Intel, Cisco, and Taiwan Semiconductor Manufacturing…

China threatens retaliation after US boycott of chipmakers

Chinese officials have threatened the United States with retaliation following a boycott of Chinese semiconductor firms and products launched by five top American companies.

Four main companies, Apple, Intel, Cisco, and Taiwan Semiconductor Manufacturing Company (TSMC), announced Thursday that they would stop selling the chipmaker to U.S. clients starting on July 1 because it refused to clear Qualcomm Inc.’s (Nasdaq: QCOM) patent license payment to the U.S. government. Qualcomm is the largest manufacturer of semiconductors in the world, but faces a bitter legal battle with Chinese companies including Huawei, ZTE, and NXP. On Wednesday, Chinese officials published a list of nearly 200 products that were “severely damaging U.S. businesses” on its official social media.

The list of targeted goods featured several semiconductor products, including routers, wireless routers, monitors, and cellphones.

China denied those claims, and said that “only the U.S. side” was blocking Chinese businesses from accessing U.S. markets.

“The U.S. side has severely slandered and hurt China-U.S. business relations,” the Ministry of Commerce told The Wall Street Journal. “It is definitely responsible for such irresponsible and immoral actions. China is fully prepared to retaliate in accordance with law, taking all necessary measures against the U.S. side.”

The Ministry of Commerce also said that some of the products targeted by the U.S. government also had fake products labels on them, and said Chinese traders would be able to replace them.

“The U.S. side will need to sit by and watch how China further pushes forward its advance into foreign markets, taking advantage of itself. That doesn’t mean the Chinese side will be perpetually aggressive,” the ministry told the Financial Times.

The Washington Post says the boycotts have been “heavily coordinated” by a “bevy of ‘identity protectionism’ groups.”

Read the full story at The Wall Street Journal.

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