On Thursday, the U.S. Department of Commerce officially listed Huawei Technologies Limited and its 68 subsidiaries in more than 20 countries as so-called "entity lists". This will prohibit Huawei from buying spare parts from American companies without the approval of the U.S. government, adding to the Sino-U.S. trade war.
The United States imposed a similar ban on China ZTE (000063.SZ) last year, almost paralysing it. Later, the United States lifted its ban on ZTE.
Analysts said that imposing such sanctions on Huawei might not be limited to Huawei itself.
At the very least, they said, it would disrupt Huawei's business. At the worst, Huawei could hardly do business. At the same time, Huawei's U.S. suppliers would suffer.
Huahua spent $70 billion on components in 2018, of which $11 billion was purchased from U.S. companies, including Qualcomm (QCOM.O), Intel (INTC.O) and Meguiar (MU.O), whose revenues are likely to vanish.
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