U.S. Is Tightening the Noose on Huawei. Why the Market Shouldn’t Shrug Off the News.

Markets reacted calmly to the Trump Administration’s latest escalation in its war on Chinese telecom giant Huawei. Maybe too calmly.

U.S. Commerce Department regulations issued Aug. 17 will in theory prevent Huawei from buying any equipment or software containing any U.S.-originated inputs, without a case-by-case license. That’s kind of a big deal, you might think.

The Shenzhen-based powerhouse vies with Samsung Electronics as a top global handset producer, and has poll position in 5G technology. It’s a major customer for leading tech names from Qualcomm (ticker: QCOM) and Qorvo (QRVO) to Taiwan Semiconductor Manufacturing (TSM). Washington could crush this thriving symbiosis if it really wanted to. China specialist Gavekal Research labeled Commerce’s move a “death sentence for Huawei.” Read more…..


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