Investors Shouldn't Worry About Cisco's Blacklist Risks in China
China's government has nearly finished drafting its trade blacklist, which it calls its "unreliable entity" list, in response to the United States' addition of Chinese firms to its own Entity List -- which bars American companies from doing business with blacklisted overseas firms.
China initially announced the list last May, after the U.S. blacklisted Chinese tech giant Huawei, but the "phase one" trade deal in January paused those plans. However, the Trump administration's recent attempts to ban ByteDance's TikTok and Tencent's WeChat apps have seemingly convinced China to restart those plans.
China's Commerce Ministry hasn't named any individual companies yet, and said the blacklist would be "strictly limited to a very small number of illegal foreign entities." But a recent Wall Street Journal report claims that Cisco (NASDAQ: CSCO), Huawei's top rival in networking hardware, has appeared in each draft of the blacklist.
Source Fool.com
