Tensions between China and Taiwan have been high for decades. However, despite different political ideologies and ambitions, both countries have coexisted. In some cases, they have even worked together for the sake of both economies. However, it looks like the relationship between China and Taiwan has soured even further following Taiwan’s decision to ban Huawei exports.

China responds to Taiwan’s Huawei ban

Just last week, Taiwan placed several Chinese companies on a blacklist, including Huawei and SMIC. The blacklist prevents Taiwanese companies from doing business with these companies unless they have a license. This would effectively prevent Huawei and SMIC from accessing certain areas of Taiwan’s business sector, including TSMC.

Taiwan is an ally of the US, so it’s unsurprising that the country has chosen its side in the ongoing US-China trade war. Unsurprisingly, China isn’t very happy with Taiwan’s decision and has vowed to take “forceful measures.”

Speaking at a briefing in Beijing, Taiwan Affairs Office spokeswoman Zhu Fenglian was quoted as saying, “We will take forceful measures to resolutely safeguard the normal order of cross-strait economic and trade exchange.” She also called out Taiwan’s decision and called it “despicable.” However, she stopped short of saying how exactly China would respond to this.

China hobbled at every turn

The US-China trade war has been going on for quite a while now. Given the power and influence the US commands, it has managed to put pressure and convince its various allies to take its side in attempting to curb China’s growing technological ambitions. For example, the Dutch company ASML, which is responsible for creating the EUV lithography machines used in semiconductor development, has been restricted from selling its tech to China.

The US government had previously placed Huawei on its Entity List. This is similar to Taiwan’s blacklist, which forbids US companies from doing business with Huawei. However, it goes even further than that. Even foreign companies cannot do business with Huawei if their products contain patents that belong to an American firm.

This has hindered China’s technological growth considerably. However, despite the hurdles, Chinese firms like SMIC have managed to surprise the world with workarounds. Huawei is still behind the likes of Qualcomm in terms of semiconductor technology, but it looks like it is slowly catching up.

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