For what it is worth…
The editor of China’s Global Times has tweeted a warning to the US semiconductor companies:
Of interest is the comment that they will “devote independent R&D”. Of course, China is globally criticized for stealing intellectual property. Will they really do as they say?
China imports much less from the US, then the US imports from China, and barriers to entry are much harder for US companies in China.
However, there are pockets of risk from a consumer boycott of certain products. Apple, which manufactures phones in China, and sells to China consumers is vulnerable to consumer shifts and tariffs.
Apple had seen a shift in sentiment in the 1Q which helped propel the stock higher, but you wonder if that positive shift, will reverse going forward. If Pres. Trump imposes a tariff on iPhones, it would be another blow to the company. Apple stock is down -3.11% in trading today.
On the other side, the China manufacturers will start to feel the effects of tariffs on their exports as demand falls with higher prices (or so it should).
The tweet is an opinion of course, but warns of the “other non-tariff risks” from a prolonged trade war.
PS Intel is down -1.83% and is down from $59 to $44 since April 23.