Japan curbs on Chinese telecom companies could hurt ties, says China

BEIJING (Reuters) – Japan’s decision to curb government purchases of Chinese telecom-equipment makers Huawei Technologies and ZTE Corp may be harmful for bilateral ties if Tokyo and actions are considered unfair, China’s ministry of commerce said on Thursday.

FILE PHOTO: The Huawei logo is displayed in the Os Horn campus in Songshan Lake in Dongguan, Guangdong province, China, on March 25, 2019. REUTERS/Tyrone Siu/File Photo

Japan was the procurement policy last year, the introduction of measures to strengthen the security who are also a de facto ban on government purchases from Huawei and ZTE.

The measures are expanded to 5G licensing rules for private companies, which means that the japanese telcos are unlikely to use the equipment in the network of the two Chinese manufacturers.

“We hope the rising protectionism in countries such as Japan, that are the supporters of free trade,” ministry spokesman Gao Feng told a regular briefing in Beijing.

The ministry had noticed that Huawei and ZTE’s operations have suffered in Japan, ” he said.

“If Japan’s actions are unfair, that would shake the mutual trust in both countries as well as the confidence of businesses to work together, the pain of the bilateral relations,” he added.

Huawei has been facing with the assembly of research, led by the United States, in the midst of the cares of the equipment may be used by Beijing for spying. The company says that the concerns are unfounded.

Last year, ZTE, the world’s fourth-largest telecom-equipment maker, was prevented from buying parts of AMERICAN companies in a crippling row over violations of export restrictions.

ZTE will resume normal business operations after paying $1.4 billion in fines and the replacement of the entire board of directors.

The bilateral ties between China and Japan have improved in the past year, with both sides expressing a desire for closer links, both strategic and economic.

Reporting by Yawen Chen and Beijing Monitoring Bureau; Additional reporting by Yoshiyasu Shida; Editing by Darren Schuettler

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