The US Department of Commerce has initiated a new crackdown on Huawei Technologies regarding the firm and its access to US firms and their know-how. This is of course a new level of decoupling between China and the US – part of President Donald Trump`s strategy that he is promoting during an election year.
The rhetoric out of Beijing has turned increasingly aggressive since the coronavirus outbreak has trigger a deep global recession and perhaps a depression. Currently the new rule in place bans Taiwan Semiconductor Manufacturing Co from supplying chips designed with Amiercan equipment and software to Huawei without a license.
China will now, according to sources block purchases of Boeing aircraft and block companies such as Qualcomm, Cisco and Apple in an act of retaliation. Boeing slashed 16,000 jobs last month of 10% of its workforce and note that 13.6% of Boeing`s total revenue is from China.
Qualcomm and Apple had big hopes for future sales – currently Greater China accounts for 16% of total revenues for Apple. Apple, Boeing and Qualcomm collectively lost $16 billion in market cap on this news. China now has influence over these major names.