China on Friday said it would release a blacklist of "unreliable" foreign companies and individuals, hitting back after the US targeted telecom giant Huawei in their escalating trade war.
The announcement was made a day before Beijing is due to increase tariffs on $60 billion in US goods, capping a week marked by rising Chinese threats of retaliation after President Donald Trump blacklisted Huawei.
The US placed Huawei on an "entity list" on grounds of national security on May 16, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued.
China's Commerce ministry announced on Friday that it will release its own list of "unreliable entities".
Ministry spokesman Gao Feng said the list will include “foreign enterprises, organisations or individuals that do not comply with market rules, deviate from a contract's spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises.”
The detailed measures against firms on the list will be released shortly, Mr Gao said.
The Chinese move to create its own entity list appears aimed at pressuring foreign companies to maintain commercial relations with Huawei.
Google, whose Android operating system is vital to Huawei phones, is among the companies that have announced that they will abide by the US order.
"Some foreign entities have violated normal market rules and the spirit of their contracts" to cut off supplies and "take other discriminatory actions against Chinese companies damaging their legitimate rights and interests, and endangering China's national security and national interests," Mr Gao said, according to the state-owned Global Times.
Huawei has been thrust to the centre of the trade spat, with Mr Trump suggesting last week that the company could be included in a deal.
The US claims the company has deep links to China's Communist-led government and warns that its equipment could serve as Trojan horse for Chinese intelligence services.
Huawei - the world's second largest smartphone maker and a leader in developing next-generation 5G networks - vehemently denies the charges.
Chinese officials have accusing the US of ‘naked economic terrorism’ and of lying about the impact of tariffs on its economy.
Washington and Beijing resumed their tariffs battle earlier this month after trade talks in Washington ended without a deal, with the US side accusing Chinese negotiators of reneging on previous commitments.
Mr Trump said on Thursday the US tariffs have had a "devastating effect" on the Chinese economy.
"The US side has said such lies not just once or twice. Every time China exposes them in time, but the US seems to be very persistent, even obsessed, and keeps repeating these lies," Chinese foreign ministry spokesman Geng Shuang said at a regular press briefing.
China is hitting back on Saturday with tariffs ranging from 5 per cent to 25 per cent on 5,410 products. Those facing the 25 per cent hike include beauty products, sports equipment, musical instruments, diamonds, wood, fabric and toys.
