While China is still debating whether or not to implement rare-earth quotas or use any of the other "nuclear options" it has available in response to escalating trade and tech war, the Global Times reports that a new cybersecurity rule indicates possible retaliation against the US as it could set the stage for Chinese regulators to take necessary action against US technology companies if their products and services are found to pose a threat to China's national security, the Global Times reported overnight.

Under the draft regulation, which is a direct response to rising pressure on Huawei by the US and various other nations and which was released on Friday for public comment, companies involved in key information infrastructure would face cybersecurity reviews by regulators, if they acquired internet products and services.

In what is China's response to America's Committee on Foreign Investment in the United States, or CFIUS, nearly a dozen government agencies, including the National Development and Reform Commission, the Ministry of Public Security and the Ministry of Commerce, will set up a mechanism for cybersecurity reviews and the CAC will set up an office to coordinate the efforts.