Reuters ahead in reporting U.S. moves to cut Huawei off from global chip suppliers; market reacts
On Friday, Reuters was well ahead of the competition with news that the U.S. was moving to cut Huawei off from global chip suppliers, in an action ramping up tensions with China. The U.S. Commerce Department said it was amending an export rule to “strategically target Huawei’s acquisition of semiconductors that are the direct product of certain U.S. software and technology.”
Following the Reuters report, European shares sharply cut their gains on concerns new aggression between the world’s two biggest economies could further hurt global trade. The news also pushed shares of several chip equipment makers down around 5%. The exclusive came after Reuters first reported in March that the Commerce Department’s move was under consideration.