The US Commerce Department has put Huawei on a trading blacklist. The Chinese tech giant says it has not ruled out legal action to resolve a growing crisis with the Trump administration: 'All options are on the table.'
Negotiations between Washington and Beijing were already on rocky ground following new rounds of tit-for-tat tariffs. Then, on Wednesday, the United States dramatically escalated its fight against Huawei, the world's largest telecoms equipment maker and one of China's national champions. That could scuttle an agreement entirely.
"China will view this as an openly hostile act and a major provocation," Paul Triolo, head of the geotechnology practice at consultancy Eurasia Group, said in a note to clients. Trade riskMuch hangs on how China responds. Despite higher tariffs announced in the past week and fraying trust, trade negotiations between the world's two largest economies haven't been abandoned entirely. Trump could meet Chinese President Xi Jinping at a G20 summit next month.
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