US government weighing new limits on sales of chips, other components to Huawei – Bloomberg

Bloomberg earlier came out with the news that the US government is weighing new limits for China’s Huawei. The Chinese tech giant has been in controversy since late and has negatively contributed to the US-China relations. The US industry associations are on their run to argue against the changes, as the news reads.

Key quotes

“US government is weighing new limits on sales of chips and other vital components to China's Huawei.”

“Industry associations representing U.S. chipmakers, software companies and manufacturers have written to Secretary of Commerce Wilbur Ross in recent weeks arguing against the changes.”

FX implications

With the phase-one failing to overcome skepticism surrounding the US-China trade deal, not to forget the US President Donald Trump’s comments to use 25% tariffs as the key to negotiation for the next round, news like this adds to the market’s risk-off sentiment. Though, no immediate reaction could be witnessed to the news as it gained popularity after a few hours of publications and also because China was silent till then.