U.S. punitive measures against foreign firms : a case study of Huawei technologies

Abstract

This thesis is a study on U.S. punitive measures against foreign firms. Based on the U.S. government’s campaign on Huawei Technologies, it shows how U.S. punitive measures may inflict profound financial impact on the targeted firm and some of its key stakeholders, how punitive measures may cause further implications beyond the intended purposes, and how punitive measures may be inconsistent with the rules under the WTO system. Based on the findings, a theoretical framework for determining the optimal strategy against punitive measures imposed by a foreign government has been created. The framework provide concrete suggestions on how a firm should counter punitive measures, based on the two general dimensions of (1) how severely the punitive measures impact the firm, and (2) the ease for the firm to find alternative (input or output).