With the U.S. intensifying its battle via restrictions on exports of technology to China, the trade war is increasingly showing signs of becoming a tech war. Broad market reaction to the latest developments has been surprisingly subdued. Maybe investors believe the impact will be isolated to just Chinese tech firms? Or perhaps investors are hoping that tensions will soon ease? On both counts, I am sceptical.
Last week, the U.S. Commerce Department put Huawei, China's most prominent technology firm, on an export blacklist which forbids U.S. companies from supplying software and components which are essential