The Trump administration on Wednesday banned Huawei from buying parts from US companies without the government’s approval.
While some experts say the ban could have negative implications for US technology companies, including Apple, one analyst thinks the development may be mere “noise.”
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The Trump administration’s new ban against the Chinese telecommunications company Huawei could have dire implications for US technology investors, but one analyst says there’s no need to panic just yet.
The US Commerce Department said on Wednesday it added Huawei to its “Entity List” that prevents the company from purchasing American parts and components without the government’s approval first.
Of course, that could hurt the US suppliers that sell their parts to the telecom giant. The ban could also make international technology companies like Apple particularly vulnerable to retaliatory measures from China.
“A tit-for-tat fight that could be disastrous for any company that sells a lot of goods into China, especially technology-based goods, if they get banned for any reason as part of a Chinese retaliatory move,” analyst Tim Bajarin of Creative Strategies Inc. told Business Insider’s Benjamin Pimentel on Wednesday.
Still, Apple shareholders shouldn’t dump their shares because of the ban, said …read more
Source:: Businessinsider – Finance