Foreign media: The Trump administration in the U.S. is reportedly planning to ban imports of China's new-generation data center optical modules on grounds of national security. Following the news, Chinese optical module stocks plunged, with the CSI 300 Telecommunications Services Index dropping as much as 9% intraday.
Stocks of companies with high export dependence, such as Zhongji Xuchuang and Guangxun Technology, fell sharply by around 6%-10%. Among them, Zhongji Xuchuang generated 62% of its revenue in the first quarter of this year from the U.S. market, while Guangxun Technology’s overseas sales accounted for as high as 96%.
JPMorgan Chase analysts believe the likelihood of the ban being fully implemented is low, suggesting it is more likely a bargaining chip used by the U.S. side amid China's recent restrictions on rare earth exports.
A legal expert pointed out that U.S. policy toward China is shifting from restricting technology transfers to limiting investment and market access, and advised Chinese enterprises to accelerate expanding their customer base and markets to diversify risks.
Original article: toutiao.com/article/1872667616404496/
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