A while ago, the President of the United States, Donald Trump, placed an export ban on China’s tech giant Huawei preventing them from buying American tech products. Following this ban, Huawei’s stock took a dip as Google and some other tech companies ended their relationship with the tech giant. However, Trump recently said that he would reconsider his decision and allow Huawei to buy American products as long as it’s not a threat to national security. Following his recent comment, tech stocks increased significantly.
Trump Reverses His Ban On Huawei, Tech Stocks Surge Significantly
The year-long trade war between China and the US may finally be coming to an end as Trump and Chinese President Xi Jinping make a truce that would ease the restrictions on the tech giant, Huawei. Shortly after the announcement, Foxconn shares increased by 1.6%. Foxconn is a tech firm that assembles mobile phones for Huawei. A subsidiary of Foxconn, Foxconn Industrial Internet saw a 10% surge in price.
Another tech firm, Ningbo Exciton Technology, experienced a 5.4% surge in shares while TSMC saw a 4% rise. A top chip maker in China, Unisplendor, saw its stock rise by more than 6.4%. Apart from these Chinese firms, American firms that supply Huawei experienced similar growth. Some of them include Micron, Broadcom, Qualcomm, and many others. Even some companies that don’t have any relationship with the Chinese tech giant experienced stock growth.
During the G20 summit in Japan, Trump had a sit down with Xi and both parties agreed to resume trade talks until they come to a mutually beneficial understanding. The export ban on China, which Trump enacted in May, was finally reversed as a sign of good faith. The business corporations in the United States have also issued statements to applaud the decision by both leaders to continue the trade negotiations.