Yesterday, the US Department of Commerce had confirmed previous reports that 38 more Chinese companies would be blacklisted by the US in connection with the Uighur question. (The Uighurs are a Muslim ethnic group in northern China oppressed by Beijing, including through “re-education camps”).
The most important of the 38 companies affected is Hikvision. A rapidly expanding company that manufactures the surveillance cameras used throughout China. This is also and especially the case for the Uighurs.
Now the Chinese Ministry of Commerce has just announced that countermeasures will be taken. So also US companies will be sanctioned in reaction to the extended blacklist of the USA! This is not a good precondition for the talks between Lighthyzer/Mnuchin and Liu He starting on Thursday!
Currently the situation is as follows:
- China is ready for a deal in areas that do not hurt both sides (purchase of U.S. agricultural products etc.)
- China obviously refuses to even discuss key areas such as intellectual property theft and grants to state-owned companies
- Trump, on the other hand, is not ready for a partial deal and threatens that the situation in Hong Kong will not escalate further in order not to jeopardise the talks.