After the United States chose to “block” Huawei, the economic barometer of the stock market responded quickly. On Monday, the three major US stock indexes closed down. According to the news released by the First Financial News, European and American chip stocks were all devastated. European stocks closed lower across the board. US stocks fell for two consecutive days, and the Nasdaq fell nearly 1.5%. The Dow Jones Industrial Average closed down 84.10 points, down 0.33%. It once fell more than 200 points in intraday trading and finally closed at 25679.90 points. The S&P 500 index closed down 19.30 points, down 0.67% to 284.02 points. The Nasdaq Composite Index closed down 113.91 points, down 1.46%, to 7702.38 points.

Among them, chip stocks collectively plunged, Nvidia and AMD both fell about 3%, Fanlin Semiconductor fell 5.4%, Micron Technology fell 4%, Qualcomm shares fell 6%, Broadcom shares fell 6%. In addition, most of the technology stocks fell, Microsoft fell 1.4%, Facebook fell 1.3%, AMD fell nearly 3%, Uber fell 0.9%, Nvidia fell 3%, Tesla fell 2.6%, Amazon fell 0.6%. Apple shares fell more than 3%.

According to industry insiders, there has never been a winner in the face of trade wars. The US government has imposed sanctions on Huawei in the form of rogues, which inevitably has to pay a heavy price for this, and this price is irreversible, and the good days of American chip companies have come to an end.

On May 15, the US government took an administrative order against Huawei and included Huawei and its affiliates in the so-called “list of entities”. This is true for Huawei, which currently relies heavily on US imported components. No small impact. However, in general, both sides of the transaction will suffer certain losses. The US export control will also affect a large number of US suppliers who have received a large number of Huawei orders.

It is understood that Huawei purchases about $67 billion worth of parts every year, of which about $11 billion comes from US suppliers. At the end of 2018, Huawei announced the list of 92 core suppliers, including 33 in the United States, the highest proportion. Among them, Intel, Qualcomm, Broadcom, Micron, Sijiaxun, Corvo, Xilinkx and Xinfeitong, all of which are well-known, are important suppliers of Huawei in the United States.

Some media said that due to pressure from the US government, Intel, Qualcomm, Xilinx, Broadcom, Qorvo, Micron, NVIDIA and other US semiconductor manufacturers may suspend cooperation with Huawei’s part of the business. In addition, STMicroelectronics, the largest semiconductor chip manufacturer in Europe, is also discussing whether it wants to continue to supply Huawei.

In fact, for many American companies, they have been unable to leave the Chinese market, and Huawei is their big customer and even the largest customer. The loss of big orders will also hurt their business, and even bankruptcy. In a media statement, Huawei pointed out that the inclusion of Huawei in the so-called “list of entities” would cause huge economic losses to US companies that cooperate with it, affecting tens of thousands of jobs in the United States.

After the release of Huawei’s trade ban, Haisi, Huawei’s President He Tingbo released a letter from President Hais to employees in the early morning of the 17th. The letter stated that “the company made the assumption of extreme survival many years ago, and it is expected that one day, all the advanced chips and technologies of the United States will not be available, and Huawei “for the assumption that this will never happen, thousands of Haisi employees have embarked on the most tragic long march in the history of science and technology, creating a ‘spare tyre’ for the company’s survival.”  .

On May 18, Ren Zhengfei, the founder and president of Huawei, said in an interview with Japanese media that even if Qualcomm and other US suppliers do not sell chips to Huawei, Huawei is “no problem” because “we are ready for this”.

According to the latest news, US officials decided on Monday to delay the ban on Huawei for 90 days, which is effective by mid-August. The reason given is that Huawei and its business partners need time to upgrade the software and deal with some contractual obligations.