Shares of key US firms dive as Chinese govt source leaks retaliation plan on Huawei ban

Source:Global Times Published: 2020/5/15 21:59:32

raders work at New York Stock Exchange in New York, the United States, Feb. 27, 2020. Photo: Xinhua

The share prices of Qualcomm, Cisco, Apple and Boeing - four companies named by Chinese government sources as possible targets for retaliation amid fresh US moves to curb China's Huawei - dropped in early trading on Friday.

Shares of Qualcomm fell 4.7 percent in early Friday morning trading, while Cisco went flat at 0.14 percent. 

Apple shares shed 2.1 percent and Boeing saw its shares down by 0.87 percent as trading began on Friday (US time).

Huawei Photo:IC

China is ready to take a series of countermeasures against a US plan to block shipments of semiconductors to Chinese telecom firm Huawei, a source close to the Chinese government told the Global Times.

Industry insiders predicted these companies' performance will be further impacted in the future.

Industry insiders said these companies' performance will be further impacted in the future.

The Trump administration on Friday moved to block shipments of semiconductors to Huawei from global chipmakers. 

China's retaliation measures may include placing US companies on an "unreliable entity list," launching investigations and imposing restrictions on US technology companies according to Chinese laws like Cybersecurity Review Measures and the Anti-monopoly Law, and scrapping purchase orders for Boeing airplanes.

In the first quarter of 2020, revenues from China made up 14.8 percent of Apple's total revenue.

Upstream and downstream players in US chip production were also affected. Micron Technology saw a 3.3 percent drop as of press time.

Global Times


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