Big Tech Caught In Crossfire As The US And China Trade War Drags On – Market News Store

Big Tech Caught In Crossfire As The US And China Trade War Drags On

Officials of Chinese Government warn edits premier business names in the world of technology this week about the consequences of obliging to the policies rolled out by the Trump administration, which is planning to put a ban on the access of American technologies by Chinese businesses.

At the same time, the Chinese officials have issued a stern warning to the American companies that have decided to comply with the move, stating that they will be facing the music. They have stated the instead of complying, the US companies should oppose those policies.

These tit for tat measures are the fallout of the Trump Administration’s decision not to sell American technology to Huawei, the Chinese giant. The ban, which was imposed last month, will clash with the long-standing technology plans that the Chinese Government has chalked out for its companies. The US move prompted a massive sell-off of Huawei stocks last month.

The Chinese chip making giant purchases semiconductors worth $20 billion every year. Loss of this massive sale would come hard for the US suppliers of semiconductors. However, the chip stocks recovered following the decision of the Commerce Department to grant the mobile companies and the providers of internet broadband a license of doing business with Huawei for a period of 90 days. However, the analysts of Wall Street have predicted that in case of a permanent ban, the stocks of chips are not likely to last long.

Google benefited from the latest move as it helped the company to keep the Android software of the Huawei gadgets updated. In a meeting, American, as well as non-American companies that export products to China, was addressed by the Chinese trade and commerce departments. While the US companies were warned about permanent consequences because of the move, their non-US counterparts were assured of getting a let off from the deadlock so long they continue to have normal trade relations with Chinese companies.

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