The growing tension between China and the United States (the US) might just intensify as the two countries prepare to take severe actions.

 

In latest reports, China has now made preparations to restrict the export of rare earth minerals to the US. They are also setting up their own blacklist for unfavourable foreign companies.

 

However, the Japanese company SoftBank announced that it will build its own 5G network with equipment from the Ericsson and Nokia brands. This is in a bid to snub Huawei, which is a major carrier of its mobile 4G.

 

Beijing authorities now signal that they are ready to deploy severe measures. This comes as the trade war between China and the US continues to deepen.

 

Neodymium is a rare earth mineral used in making magnets. It is one of the most important components in headphones.

 

Economists and international trade observers speculate that US companies have no good alternative for the product outside China.

 

China already has US tech business like Google, Facebook, Twitter and YouTube banned in the country.

 

The new list projected by the country, however, supposedly cover “foreign enterprises, organisations and individuals that don’t obey market rules, violate contracts and block, cut off supply for non-commercial reasons or severely damage the legitimate interests of Chinese companies”. This is according to a Chinese government official.

 

Huawei seems caught in the middle of all the friction. Due to this, the company might just be the biggest loser. The loss of business with SoftBank might be an immense disadvantage to their 5G technology.

 

The  United States blacklist may have influenced the new decision by SoftBank. This is probably one of the lingering impacts of US-China trade relations.

 

This is also likely to permanently tarnish Huawei’s credibility in the long run.