US companies reeling under Trump's Huawei ban

Discussion in 'Asia' started by reedak, May 17, 2019.

  1. reedak

    reedak Well-Known Member

    Jul 7, 2009
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    1. Hong Kong (CNN Business) New US measures that restrict exports to Huawei could cost Silicon Valley billions in lost revenue....

    China's Huawei bought $70 billion worth of components and parts last year from 13,000 suppliers. Of that, about $11 billion was spent on products from dozens of US businesses, including computer chips from Qualcomm (QCOM) and Broadcom (AVGO), as well as Microsoft (MSFT) software and Google's (GOOGL) Android...

    Shares in Qualcomm, whose sales to Huawei account for less than 10% of its revenue, closed down 4% on Thursday in New York. Huawei sales make up 15% of optical maker Lumentum's (LITE) revenue. Its stock plummeted nearly 12%.

    Shares in other US chipmakers that supply to Huawei — including Qorvo (QRVO), Skyworks Solutions (SWKS), and Xilinx (XLNX) — also ended the day in the red.

    2. Besides exposing its hypocrisy for blaming China for the US trade deficits, the new US measures lay bare the US sinister agenda behind the trade war. Instead of trying to export more to China, the US is creating more trade deficits for itself by banning the export of US components to China in its attempt to cripple Huawei. China can let the US enjoy trade surplus anytime just by handing over a long list of imports worth billions of dollars for weapons, cutting-edge technology, etc. It won't come as a surprise that over 90 percent of goods in the list will be rejected by the US.

    3. The supposed sole superpower is mobilizing all its available resources just to crush one company. This is unprecedented in the history of mankind. The US had never made such a fuss over its most powerful rival, the defunct Soviet Union, even at the height of the Cold War. Neither did any previous empires (Greek, Roman, Mongol, British, etc) make such a fuss over a private company. Does it make any sense to use a sledgehammer to kill an ant?

    4. Behind the American farce is not trade deficit or protectionism, but the sinister agenda to crush a country of one fifth of mankind with over 2,000 years of civilization. China has many ways to hit back at the Achilles heel of its opponent, such as stricter implementation of the ban on imports of US garbage at all checkpoints and customs.

    Reports said that Trump may temporarily scale back the new measures to ban Huawei (perhaps, just to lessen the adverse impact on US companies). The scale back is akin to a temporary withdrawal of the Greeks in the Trojan War but returning stealthily for the final kill after the Trojans were tricked into complacency.

    5. Like the US sanctions against Iran, North Korea, Cuba and Venezuela, the US trade war (which is in fact a disguised sanction) against China proves that the US is an extremely unreliable and dangerous trading partner. It is certainly not a natural trading partner for any country either.

    I take the opportunity to point out that the US is craftily laying a "food trap" for China which is forced to import more and more US agricultural products. If the US suddenly bans the exports of food to China when it is crippled by drought one day, one fifth of mankind will be starved to death in a famine.
    Last edited: May 17, 2019

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