Trump’s Huawei ban raises hopes for Chinese chip suppliers

By Reuters |

Since the White House added Huawei Technologies Co Ltd to a trade blacklist last week, several global companies have suspended business with the world’s largest telecoms equipment maker. Image: REUTERS/Aly Song

Washington’s blacklisting of technology giant Huawei has taken a toll on US semiconductor shares, but China-listed firms have rallied as investors bet they can gain from Beijing’s stepped-up efforts to build a homegrown supply chain.

Share price gains of little-known firms such as Shenzhen Fastprint Circuit Tech and Jiangsu Changjiang Electronics Technology could be fleeting, analysts say, but Huawei’s troubles could accelerate a long-term campaign in China to replace imported technologies.

Since the White House added Huawei Technologies Co Ltd to a trade blacklist last week, several global companies have suspended business with the world’s largest telecoms equipment maker.

Citic Securities called the US ban on Huawei “a warning bell” for China’s chip industry, highlighting the importance of establishing independent supplies in the chip industry chain.

Rapidly escalating Sino-US trade tensions have also raised the stakes for Shanghai’s Nasdaq-style technology board, which will be launched as soon as next month. The board is largely seen as part of President Xi Jinping’s efforts to counter U.S. curbs on Chinese technology advancements.

Read more of this story

(Visited 144 times, 1 visits today)
About Cholo Brooks 13330 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.