Using the alleged abuse of human rights in the Xinjiang region of China as a springboard from which to launch their campaign against the nation, the US has now blacklisted 28 Chinese companies. This prevents them from importing U.S. technology that is needed to run their business.
Specifically, Chinese facial recognition startups SenseTime, Megvii and Yitu were blacklisted, in a clear move to intensify a technological arms race that has been brewing between the two superpowers for years.
"This action will ensure that our technologies, fostered in an environment of individual liberty and free enterprise, are not used to repress defenseless minority populations," Commerce Secretary Wilbur Ross said in a statement.
Second only to artificial intelligence company ByteDance, which is also Chinese, SenseTime is one of the most valuable artificial intelligence startups in the world. It has a valuation of $7.5 billion, and is backed by SoftBank (OTCMKTS: SFTBY) and Alibaba
"The U.S. accusations against China are groundless and senseless. They only expose the evil motives of the United States to interfere with counterterrorism efforts in Xinjiang and thwart China's development," China's Foreign Ministry spokesman Geng Shuang said on Tuesday.
Now, Trump will be meeting with the Chinese Vice Premier on Friday to discuss further trade agreements, which has fretting investors calm for now. In the past, meetings between Liu and Trump this year have resulted in constructive progress for trade issues. For instance, after talks in January, China increased its soybean buying. In February, talks actually yielded delays in the next round of tariffs.
"The Chinese side has come with great sincerity and is willing to make serious exchanges with the U.S. on issues of common concern such as trade balance, market access and investor protection, and promote positive progress in the consultations," Chinese Vice Premier Liu He said.
