Trump may reportedly blacklist Chinese surveillance giant Hikvision, showing the trade war is shifting from sweeping tariffs to direct attacks on companies
Traders are bracing for the Trump administration to expand its blacklist of Chinese technology champions, raising the prospect of further escalation of the US-China trade war.
The White House is considering a ban on exports of US components to Hikvision, which would cut off the flow of American technology to the Chinese video-surveillance giant, according to The New York Times. As with the recent restrictions on the Chinese telecom titan Huawei, American companies would require a license from the Commerce Department to trade with Hikvision.
“It’s not looking too great overall, and we continue to witness Washington push hard in one direction and then beat a tactical retreat to test its opponents,” said Neil Wilson, the chief market analyst for Markets.com.
The Trump administration has targeted Chinese technology companies over national security concerns given their close relationship with the Chinese government and laws requiring them to share information if requested.
“Traders are waiting for the next chapter in the unfolding trade drama,” said Jasper Lawler, the head of research at London Capital Group. “Sentiment remains fragile as investors digest the changing face of the trade dispute from broad sweeping tariffs to direct action against single Chinese companies.”
The Chinese firms’ connections to consumers and US companies, however, makes cutting them off a challenge. The White House has already relaxed its ban on Huawei, allowing it to purchase US goods to support existing devices and equipment for three months.
Here’s the market roundup as of 11:01 a.m. (6:01 a.m. ET):
European equities rose in morning trading, with Britain’s FTSE 100 up 0.5%, Germany’s DAX up 0.3%, and the Euro Stoxx 50 up 0.2%,
Asian markets were mixed, with the Shanghai Composite and the SZSE Component down 0.5%, while Hong Kong’s Hang Seng was up 0.2%.
US stocks were poised for a mixed open. Futures underlying the Dow Jones Industrial Average and the S&P 500 were almost flat, while Nasdaq futures were down 0.2%.
The dollar climbed to a two-week high ahead of the release of minutes from the Federal Reserve’s monetary-policy from meeting earlier this month. The minutes could signal a less cautious stance from the policymakers.