Chinese technology stocks, particularly those that supply major companies like Apple, saw a sharp rise on Monday after the Trump administration signaled a temporary exemption for electronics from heavy trade tariffs on Beijing.
Though President Trump clarified that the exemption is temporary and that electronics imports would be subject to separate tariffs later, markets welcomed the short-term relief. The tech sector, in particular, had been battered by the ongoing U.S.-China trade war in recent weeks.
In China, Apple suppliers such as Luxshare Precision Industry Co Ltd and AAC Technologies Holdings Inc saw gains of 1% to 3%. Lenovo Group, a giant in electronic devices, surged more than 5%. The Hang Seng index also jumped nearly 3%.
Other Chinese tech stocks, including Semiconductor Manufacturing International Corp, as well as internet giants Alibaba, Baidu, and Tencent, experienced sharp rebounds, regaining some of their recent losses.
China’s electronics manufacturers are deeply tied to U.S. exports, with the country playing a critical role in the manufacturing supply chain for tech giants like Apple. The escalation of trade tensions raised concerns about the stability of this trend, particularly since around 90% of Apple’s flagship iPhone is made in China.
The possibility of higher tariffs raises fears of increased electronics prices in the U.S. at both the consumer and industrial levels.
Apple’s Asian suppliers outside China also saw gains. In Taiwan, Foxconn (Hon Hai Precision Industry Co Ltd) surged over 4%. South Korea’s Samsung Electronics rose by 1.5%, while in Japan, Sharp Corp and Sony Corp gained 3.5% and 1.7%, respectively.
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