U.S. Faces Pushback On More China Chip Curbs As Election Nears; People Familiar With Meetings Describe Pushback On Chips Curbs
Portfolio Pulse from Benzinga Newsdesk
The U.S. is facing resistance to imposing additional chip restrictions on China as the election approaches. According to Bloomberg, sources familiar with the discussions have reported pushback against further chip curbs.
April 12, 2024 | 4:26 pm
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NEUTRAL IMPACT
FXI, an ETF tracking Chinese large-cap stocks, may face volatility due to uncertainties around U.S.-China relations and chip restrictions.
FXI's performance is closely tied to the overall health of the Chinese economy and its major companies. Any additional U.S. restrictions on chips could affect key sectors in China, leading to potential volatility in FXI's price. However, the outcome and impact of these restrictions are still uncertain, hence the neutral score.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
SMH, an ETF focused on semiconductors, might experience short-term price movements due to the ongoing U.S.-China tensions over chip restrictions.
Given SMH's direct exposure to the semiconductor industry, any further U.S. restrictions on chip exports to China could have immediate implications for the sector. However, the current pushback and uncertainty around these restrictions lead to a neutral outlook in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 85
NEUTRAL IMPACT
SPY, a broad market ETF, may see minor impacts from the U.S.-China chip restriction debates, reflecting broader market sentiment and geopolitical tensions.
While SPY tracks a wide range of sectors, the geopolitical tensions and regulatory moves between the U.S. and China over chip technology could indirectly affect market sentiment and thus SPY's performance. The impact is expected to be less direct and significant compared to sector-specific ETFs like SMH.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60