Analysts at ANZ explained that overnight, a Chinese court issued a temporary injunction banning Micron Technology from selling its products in the semiconductor market there.
Key Quotes:
“This action is part of the ongoing dispute over alleged theft of Micron’s intellectual property to expand China’s domestic chip industry.”
“This comes after the US moved to block China Mobile from entering its telecommunications market on national security grounds.”
“Discussions between the US and China on trade are reported to have stalled, as a result of the ongoing dispute about intellectual property, with the US looking to reduce involvement by the Chinese government in tech industries.”
“Markets will be watching to see if any resolution can be achieved this week, with the first round of US tariffs set to come into effect on Friday and China poised to impose counter measures.”
“Of note, the People’s Bank of China has said it won’t use the yuan as a tool in the trade dispute.”
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