China Releases Regulations on Blacklist Entities
The Ministry of Commerce of China released regulations on blacklist entities on Sept. 19 in response to the U.S. government’s restrictions on Tencent.
The regulations are applicable to every foreign enterprise, organization or individual blocking a Chinese company for a non-commercial purpose or seriously infringing upon its legitimate rights. The Chinese government is yet to disclose specific targets.
Every entity on the blacklist is subject to prohibition or limitation with regard to export, import and investment in relation to China. In addition, its executives and staff members cannot enter or live in China and fines may be imposed in some cases. U.S. companies such as Apple, Cisco, Qualcomm, Boeing and Tesla are being mentioned as the first group to be put on the blacklist.
South Korean companies are likely to take a hit in that case. Samsung Display and LG Innotek are currently supplying iPhone display panels and camera components to Apple, respectively. LG Display has supplied iPhone display panels since last year and its supply for the iPhone 12 Max, which will be unveiled next month, amounts to 20 million units. LG Chem is supplying batteries to Tesla.