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Beijing Retaliates Against Huawei Blacklist

The country's Cyberspace Administration issued a new draft of cybersecurity rules that could see US technology blocked from China.

China retaliated against Washington on Friday, with a draft set of cybersecurity regulations for "public" consultation, reportedForbes. The draft from the country's Cyberspace Administration said that "in order to improve the security and controllability of key information infrastructure and maintain national security," companies acquiring "network products and services that affect or may affect national security" will now need to evaluate the national security risk.

RELATED: HUAWEI'S BIGGEST PHONE ASSEMBLER HALTS PRODUCTION AT CHINA PLANT

Comprehensive analysis 

The cybersecurity plan is meant to address the U.S. sanctions against Huawei, HikVision and Dahua. Under the new terms, the country's organizations would need to conduct "comprehensive analysis and evaluation of risks brought about by national security."

The purpose of the new regulations, claims the consultation document, is to "promote the application of advanced technologies, enhancing fairness and transparency, and protecting intellectual property rights." The Central Network Security and Informatization Committee "will take the national lead."

This move by Beijing is bound to be taken seriously by tech companies lobbying Washington because of the size of the Chinese market. Huawei could use this support from China as reports are already surfacing of Huawei smartphones being traded in for rivals.

Bilateral talks

In addition, interest from buyers is shrinking fast. But this might not be the end for Huawei and the U.S. The Cyberspace Administration's consultation is set for a month, giving enough time for effective bilateral talks that could prevent economic damages on both sides.

This is good news particularly for Apple as reports have been stating the company's profits could be hurt by as much as 29% if China issues a ban.

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