Fitch: New U.S., China trade restrictions could be broadly disruptive - Reuters

Eren Sengezer FXStreet

In a recently published report, Fitch Ratings noted that the new U.S., China trade restrictions could be broadly disruptive. Below are some key takeaways, as reported by Reuters.

A possible blacklisting of U.S. companies as retaliation for restrictions on Huawei would be disruptive for U.S. technology sector.
A ban on rare earth metals exports to U.S. as retaliation for restrictions on Huawei would be disruptive for U.S. technology sector.
Financial effects of trade restrictions on tech cos getting significant rev from China/using rare earth minerals in manufacturing may be material.
It is too early to assess potential credit implications on tech cos due to new U.S., China trade restrictions.
Effectiveness of unilateral sanctions will be complicated by China's dependence on critical components made by foreign cos, exports.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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