White House Plans To Cut Off Sales Of American Chip Technology To China

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White House Plans To Cut Off Sales Of American Chip Technology To China

Just hours after Beijing lifted more trade-war restrictions on importing US farm products due to the outbreak…

…the White House has paid President Xi back by launching an economic assault on Huawei and other Chinese telecom companies that threatens to revive the trade war and strain the relationship between Beijing and Washington in the middle of a global pandemic.

Despite all of this, Nasdaq futs are up strongly pre-open, confirming what we already knew: this Fed-assisted market cares about only one thing, and it’s not fundamentals. Still, American chipmakers could lose access to a major market.

White House Plans To Cut Off Sales Of American Chip Technology To China

As the Pentagon scrambles to pressure its European partners not to allow the use of Huawei parts in their domestic 5G networks, reports from the last few days have claimed the White House is preparing to ratchet up the economic  pressure on Huawei. Now, WSJ is reporting that Washington’s wrath could hammer the entire Chinese telecom sector as the administration is considering a complete ban on selling American chip-making equipment and technology to Chinese firms.

Once again, the Commerce Department is on the front lines of the pressure campaign: The department is reportedly drafting changes to the ‘foreign direct product rule’, which restricts the use of US technology by foreign companies for national security reasons.

The changes has reportedly been ‘under discussion’ for weeks. Furthermore, this policy would accompany a separate ruling that would restrict chip sales to Huawei, as we’ve reported in recent days.

We suspect we’ll be hearing more about this soon.


Tyler Durden

Mon, 02/17/2020 – 07:57

Author: HEDGE

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