Trump declares ‘NATIONAL EMERGENCY’ and blacklists Huawei – global stocks ON EDGE
The US leader has banned the Chinese firm from buying US technology without seeking special approval, while also effectively barring its equipment from being used by US telecom networks. President Trump first took action by signing an executive order declaring a national emergency and banning US companies from using telecommunications equipment made by firms deemed to pose a national security risk. While this order, which invoked the International Emergency Economic Powers Act, did not initially name Huawei, his administration took separation action hours later by releasing a blacklist of companies. The commerce department added Huawei and 70 companies to this banned list, meaning they must now seek government approval to use components and technology from US companies.
Taken together, the two moves threaten Huawei’s ability to continue to sell many products because of its reliance on American suppliers.
The move comes at a delicate time as the US and China remain locked in a bitter trade war, with hopes that talks will resume in June to bring a resolution to the ongoing dispute.
The two world powers are currently at loggerheads with both sides threatening to hike tariffs on their respective imports.
President Trump has ramped up the pressure by raising tariffs on a list of $200 billion worth of Chinese imports from 10 percent to 25 percent.
China retaliated with higher tariffs on a revised list of $60 billion worth of US products.
Mr Trump has threatened to launch 25 percent tariffs on another $300 billion worth of Chinese goods.
Global stocks have been left struggling to find their feet over the increasing hostility.
Hong Kong stocks ended flat with the Hang Seng index nearly unchanged at 28,275.07.
MSCI’s Asia ex-Japan stock index was weaker by 0.28 percent, while Japan’s Nikkei index closed down 0.59 percent.
China stocks ended higher as Beijing is expected to roll out more stimulus to shore up its economy.
The blue-chip CSI300 index rose 0.5 percent to 3,743.96, while the Shanghai Composite Index closed up 0.6 percent at 2,955.71.
Stocks across Europe were in the red at 10.42am, with the FTSE 100 down 0.20 percent to 7,282.39.
Germany’s DAX has lost 0.14 percent taking it to 12,082.45, while the Paris CAC 40 is done 0.23 percent to 5,362.12.
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