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China’s threat to blacklist US firms as security risk could be key weapon in latest trade talks

China’s plan to name foreign companies as a risk to national security is expected to be used as a key bargaining chip when trade talks with the United States resume, according to industry sources.

The two sides are poised to restart negotiations in Beijing next week following the face-to-face meeting between US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Osaka, Japan, last weekend.

But sources and observers said China had several cards to play if the momentum towards a trade deal stalled again – including the proposed list of “unreliable entities”.

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