China risk has reemerged in the U.S. stock market

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Godspower

Well-Known Member
Apr 21, 2020
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Amid a debate about stock market investors underestimating the risks from the coronavirus-led shutdown of the global economy, China risk is reemerging. How the U.S. responds may determine the direction of the stock market.

The U.S. has long contended that Chinese telecommunications-equipment maker Huawei Technologies is a risk to national security. It has been contended that the Chinese can spy on the U.S. and other countries through back doors built into Huawei technology.

There is a report that the U.S. is amending an export rule to block the sale of certain semiconductors to Huawei. This is in addition to prior restrictions on exports of U.S. technology to Huawei.

There is a swift response from China in a tweet by Hu Xijin, the influential editor of the Global Times, which has close ties to the Chinese government. He said China may declare Apple AAPL, -0.59%, Qualcomm QCOM, -5.13% and Cisco CSCO, +0.95% as unreliable entities and stop buying planes from Boeing (BA).