China reluctant to hit back at US firms over Washington’s new Huawei ‘death sentence’

China reluctant to hit back at US firms over Washington’s new Huawei ‘death sentence’

  • Beijing has not yet announced any measures to hit back at new US curbs on Chinese technology giant Huawei
  • Analysts say Beijing still needs US technology and is keen to keep American businesses onside to help revive its economy

China is finding it hard to retaliate against US efforts to choke Huawei from access to key technology because any move to punish American businesses could harm the country’s still-fragile economic recovery from the coronavirus pandemic, analysts say.

Washington stepped up restrictions on the Chinese company’s access to chips and other technologies this week, tightening the noose on one of the country’s most prized technology champions and threatening its business as the world’s largest smartphone manufacturer.

Beijing, while expressing anger at the US move, has not announced any measures to hit back, including curbs on American businesses operating in the world’s second biggest economy.