Global Stock Market Performed Better After US Removed Temporary Restrictions On Huawei

Global Stock Market Performed Better After US Removed Temporary Restrictions On Huawei

Business

Trump pledge during his election campaign that he is going to make America great again, and so far, he has taken some blunt and controversial decisions, and one of them is banning Huawei’s products. However, recently, Trump administration has decided to lift that ban on Huawei for 90 days to supporting those US companies which are dependent on Huawei, and the global market is happy about it. Accordingly, many stock markets from different corner of the world performed better on Monday when trump declared US government does not ban Huawei for ninety days.

US-based companies like Broadcom, Qualcomm, Nvidia are one of the major suppliers of Huawei, which makes them dependent on the Chinese company. Shares of these companies went down from last few days. However, after Trump administration has decided to remove the restriction US, European, and Asian stock market performed well. The US government already has an increased rate of tariff on Chinese imported goods to 25% from 10%, which is affecting many businesses in both countries. Under new terms and condition, Huawei has been allowed to use the US-based companies goods only to help existing customers in the USA.

Many people are still using Huawei’s technological equipment and network carrier services, so it became necessary for the USA to remove these restrictions. Now some financial experts are saying that this move of Trump is a clear indication that Trump is not handling China’s situation carefully. A few days ago both countries officials came together to talk about the trade issues, but nothing came out of that meeting. Huawei has been stopped by US in its allied countries also because the government is trying to convince others that Huawei is indirectly controlled by Chinese government. Now, this temporary decision of lifting the ban will help the Chinese company to get back to its US customers.

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