China will establish an ‘unreliable entities’ list including companies and people

China said it will establish a list of so-called unreliable entities of foreign companies and people that “seriously damage” the interests of domestic firms.

“Foreign enterprises, organizations and individuals that do not comply with market rules, violate the spirit of contract, block or cut supplies to Chinese firms with non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises, will be added to the list of unreliable entities,” Gao Feng, a spokesperson at the Ministry of Commerce, said Friday.

He added detailed measures will be disclosed soon.

While the announcement didn’t mention any specific country or company, it came at the height of the ongoing trade war with the U.S. which escalated after President Donald Trump blacklisted Chinese telecom giant Huawei, halting its ability to purchase American chips.

The world’s two largest economies have been jockeying with tit-for-tat strategies after trade talks fell through earlier this month. In a recent move, China reportedly stopped purchases of U.S. soybeans and threatened to cut off its rare earth supply to the U.S.

Both sides have slapped more tariffs on billions of dollars worth of each other’s goods in May. The tariffs on $60 billion in U.S. goods in retaliation for the higher duties on $200 billion worth of Chinese products will kick in June 1.

source: CNBC