Edison Lee, a Jefferies analyst, said that he thinks the market is more concerned about a resumption of a China-U.S. trade war that could possibly lead to this deal being off. However, he added that he doesn’t think this will be the case.
If Washington imposes taxes, experts expect Beijing to retaliate with its own duties on the United States’ imports. These imports include soybeans, chemicals, planes, and cars, according to a list from April.
ZTE’s Target Price is Down
Nomura cut target price of ZTE from HK$27 to HK$16 on Friday. Nomura said that they expect the company to recover but not for a very long time. They added that ZTE’s consumer business will probably see a loss of market share to competitors.
The company is now the focus again as concerns of a possible trade war between Washington and Beijing rise.
Questions from the American People:
- How might a trade war with China affect ongoing negotiations with North Korea?
- Will China enact higher import taxes? Or will they keep tariffs low to keep the U.S. from raising tariffs even higher?
