5 Tech ETFs Losing The Most On Huawei Ban: What's Ahead?
Zacks Investment Research | May 20, 2019 10:05PM ET
Trump’s latest move has yet again shattered the Wall Street, especially the technology sector and worsened the trade spat between the two biggest economies. The Trump administration last week blacklisted Chinese firm Huawei Technologies and 26 of its affiliates, forbidding it from doing business with American companies.
The administration added Huawei to its "entity list", which means American companies cannot provide tech to Huawei without the government’s permission. Per the Commerce Department report, Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interest. The ban threatens Huawei's supply chain and could delay the rollout of 5G services around the world. It will also hurt sales of American companies whose revenues are heavily tied to this Chinese equipment maker.
U.S. chipmakers were the worst hit as a number of them have significant exposure to Huawei and are major suppliers to the Chinese firm. According to an estimate from investment bank advisory company Evercore, Huawei — the world’s largest provider of telecom equipment — purchases $20 billion of semiconductors each year (read: Original post
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