FedEx under investigation by China as Huawei alleges parcel interference

The ongoing trade war between the U.S. and China is showing no sign of slowing down and it could actually get worse as China has announced plans to follow in the US' footsteps by creating a blacklist of its own. No specific companies were named, but the list will target firms that block or deny supplies to Chinese industries.

The Financial Times reported Friday that tech giant Huawei has ordered its employees to cancel technical meetings with American contacts and has sent home numerous us employees working at its Chinese headquarters.

The move is not entirely suprising, considering the mounting pressure the United States has been putting on Chinese technology giant Huawei. As a result, Huawei is losing access to key components and software needed to produce its Android smartphones and Windows laptops. That opens the door to targeting a broad swathe of the global tech industry, from US giants like Alphabet Inc.'s Google, Qualcomm Inc. and Intel non-American suppliers that have cut off Huawei, such as Toshiba and Arm.

That said, it is unclear what will happen exactly when a company gets put on China's blacklist. Talks between the two sides stalled after U.S. President Donald Trump accused China of backsliding on a deal and Chinese officials argued that the Americans raised their demands.

The Trump administration added Huawei to a trade blacklist, making restrictions that will make it extremely hard for the company to do business with USA counterparts, earlier this month.

On Saturday, Chinese retaliatory tariffs on the USA goods kicked in, after the Trump administration raised tariffs on Chinese goods worth $200 billion to 25 percent, from 10 percent.

Beijing has readied a plan to restrict exports of rare earths to the United States if needed, according to people familiar with the matter. The measures would likely focus on heavy rare earths, a sub-group of the materials where the particularly reliant on China. Though it is a common knowledge that the list will include U.S firms, and perhaps firms from countries that have since complied with U.S ban on Huawei and other Chinese firms.