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“Based on what I know, if the US further blocks key technology supply to Huawei, China will activate the “unreliable entity list”,” Hu Xijin, editor-in-chief of the Global Times, tweeted out on Friday. Xijin further explained that China could restrict or investigate US companies such as Qualcomm, Cisco and Apple and suspend the purchase of Boeing airplanes.

Earlier in the day, the US Commerce Department in a statement announced that they have decided to bar Huawei from acquiring semiconductors and chipsets made using US software and technology. 

Market reaction

These comments seem to be weighing on the market sentiment. As of writing, the S&P 500 futures were down 0.7% on the day.