How long will it last ...
What has been touted as the Trump administration's greatest achievement is that it has imposed strict sanctions on Chinese companies and has finally eroded the momentum of Huawei, the world's leading smartphone maker. .. Regardless of the truth of the sanctions, Huawei, which has been put on the Entity List that lists the companies subject to sanctions by the U.S. Department of Commerce, can only sell models that can not use genuine Google apps and stores, China Outside the market, I was shunned at once.
Will the fate of this fierce US-China trade war, which may have been crazy in a sense, come to an end with the resignation of President Trump? It was a big headwind for a Chinese company that was flickered to be subject to sanctions, which might have expected such a direction. At this point, the US Department of Commerce updated the Entity List, which includes the name of DJI, which is now one of the world's leading drone makers!
In fact, DJI may be the next target after Huawei because the handling of data collected by drones is suspicious. There was also concern that. This time, the U.S. Department of Commerce explained that it has decided to impose strict sanctions, considering its involvement in human rights violations above all else. In the past, Bloomberg Businessweek has accused DJI of providing drones to Chinese authorities to support the crackdown on Islamic minorities in the Xinjiang Uygur Autonomous Region.
DJI has made such a statement, emphasizing that being on the Entitiy List does not immediately affect the sales or support of its products. This was the same at first with Huawei, wasn't it? However, if the product technology stocked so far runs out, even DJI, which has the largest market share in the industry, will have to face a difficult situation.
In addition, the US Department of Commerce has set Semiconductor Manufacturing International Corporation (SMIC), a domestic chip maker in China, as a new sanction target. This also seems to have a great impact on future business continuity, but will this route be followed by the new Biden administration? Or will this time just the last bad news of the Trump administration, in fact, the impact of the imposition of sanctions will suddenly weaken at the same time as the transition to the administration?