The vague wording of the Chinese state media report opens the door for Beijing to target a broad swathe of the global tech industry -- from U.S. giants like Alphabet Inc.’s Google, Qualcomm Inc. and Intel Corp. to even non-American suppliers that have cut off China’s largest technology company. Those run the gamut from Japan’s Toshiba to Britain’s Arm.
Shares in Apple Inc. slipped less than 1% while Qualcomm Inc. gained less than 1% and Intel Corp. was little changed in U.S. trading Friday. U.S. stocks slumped as the Trump administration’s trade spats intensified.
“Surely companies that have announced cutting supplies to Huawei, such as Panasonic and Toshiba, would be under threat,” said Michelle Lam, Greater China economist at Societe Generale SA in Hong Kong. “It could be very damaging to multinational companies.’’
The lopsided nature of the trade relationship between the USA and China means the impact of tariffs is equally lopsided. China’s decision to stop buying agricultural products and to advise the population to boycott US goods is the extent of what can be achieved. The geopolitical theatre is where China has more cards to play, not least in its support for North Korea, Iran and Pakistan. The purge/execution of North Korea’s lead negotiator with the USA over the last week is a sign that card is also being readied for play.Click HERE to subscribe to Fuller Treacy Money Back to top