Huawei blacklisting, trade war weapons

If strictly enforced, the US decision to ban Huawei from doing business with American firms would be major headache for the company, which accounts for around 0.2% of Chinese GDP. And the move may also make it more difficult for the two countries to reach a trade deal. However, we think speculation that the People’s Bank will retaliate by offloading its holdings of US Treasury bonds is wide of the mark.

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