China is reportedly studying tech companies’ reliance on US suppliers

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A Huawei logo is pictured at their store at Vina del Mar, Chile July 18, 2019.

Rodrigo Garrido | Reuters

China is surveying its tech companies to gauge their exposure to U.S. suppliers, aiming to reduce reliance on American technology as the trade war between the two countries intensifies, The Wall Street Journal reported.

Over the past few months, officials from China’s National Development and Reform Commission, Ministry of Industry and Information Technology and Ministry of Commerce have been canvassing domestic tech firms including smartphone makers Xiaomi, Oppo and Vivo to learn about their supply chain structure, the Journal reported, citing people familiar with the matter.

Technology has been a sticking point in the escalated conflict between the U.S. and China. Earlier this year, the U.S. blacklisted Chinese telecom giant Huawei for national security concerns, halting its ability to purchase U.S.-made chips. China responded by establishing an “unreliable entities list,” threatening that foreign companies, organizations and individuals could be added to the list.

Both countries have piled on new tariffs in the past week. President Donald Trump on Friday also said he’s ordering American companies to immediately start looking for an alternative to China.

In the meantime, China is accelerating efforts with other countries in order to reduce its reliance on the U.S. The official newspaper of the Chinese Communist Party, the People’s Daily, on Sunday published several articles about China’s improving cooperation with other countries and regions including Thailand, Japan, South Korea and Latin America.

Click here to read the original Wall  Street Journal story.

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