“China said it will establish a list of so-called “unreliable” entities it says damage the interests of domestic companies, a sweeping order that could potentially affect thousands of foreign firms as tensions escalate after the U.S. blacklisted Huawei Technologies Co.”
At this point in time this is just posturing since they haven’t actually done anything yet and the announcement is by the state media and not official government spokespeople – although in China the media is run by the government. However what’s interesting about this from an investing point of view is the following: “[the scope of Beijing’s shit-list could extent] even non-American suppliers that have cut off China’s largest technology company. Those run the gamut from Japan’s Toshiba to Britain’s Arm.”
In other words, the potential hit on equities if this latest escalation from China were to be realised might go beyond US companies and into Europe / Japan. With this latest move, the trade war rhetoric is expanding internationally. If the escalations keep coming there is a risk for tech stocks globally stocks to take a big hit, not just Chinese and US companies.
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