Edition:
United Kingdom

Fitch Says New U.S., China Trade Restrictions Could Be Broadly Disruptive


Monday, 10 Jun 2019 

June 10 (Reuters) - Fitch::FITCH SAYS NEW U.S., CHINA TRADE RESTRICTIONS COULD BE BROADLY DISRUPTIVE.FITCH SAYS A POSSIBLE BLACKLISTING OF U.S. COMPANIES AS RETALIATION FOR RESTRICTIONS ON HUAWEI WOULD BE DISRUPTIVE FOR U.S. TECHNOLOGY SECTOR.FITCH SAYS A BAN ON RARE EARTH METALS EXPORTS TO U.S. AS RETALIATION FOR RESTRICTIONS ON HUAWEI WOULD BE DISRUPTIVE FOR U.S. TECHNOLOGY SECTOR.FITCH SAYS FINANCIAL EFFECTS OF TRADE RESTRICTIONS ON TECH COS GETTING SIGNIFICANT REVENUE FROM CHINA/USING RARE EARTH MINERALS IN MANUFACTURING MAY BE MATERIAL.FITCH SAYS IT IS TOO EARLY TO ASSESS POTENTIAL CREDIT IMPLICATIONS ON TECH COS DUE TO NEW U.S., CHINA TRADE RESTRICTIONS.FITCH - BELIEVE EFFECTIVENESS OF UNILATERAL SANCTIONS WILL BE COMPLICATED BY CHINA'S DEPENDENCE ON CRITICAL COMPONENTS MADE BY FOREIGN COS, EXPORTS.FITCH SAYS SANCTIONS AGAINST QUALCOMM, CISCO AND GOOGLE ARE VIEWED AS LESS LIKELY AS CHINA IS DEPENDENT ON THEIR TECHNOLOGIES.FITCH SAYS LARGE RETAILERS INCLUDING WALMART, AMAZON MAY BE LESS VULNERABLE TO SANCTIONS DUE TO THEIR GLOBAL SCALE AND CHINA'S RELIANCE ON EXPORTS.FITCH SAYS VIEWS APPLE, DELL, HP AS POTENTIAL BLACKLIST CANDIDATES IF CHINA BLACKLISTS U.S. COMPANIES IN RETALIATION FOR RESTRICTIONS ON HUAWEI.FITCH SAYS BANS FOR NATIONAL SECURITY REASONS, ASSUMING CHINA'S ACTIONS ALIGN TO THOSE OF U.S., MAY ALSO BE A REACH FOR U.S. RETAILERS.