The New York Times reports, "For all of China's efforts to become a global force in high technology rivaling the United States, it has mostly failed to produce top-flight contenders in one crucial area: the industry that gave Silicon Valley its name. Last year, China imported more than $300 billion worth of computer chips, the backbone of all digital products. That is more than it spent on crude oil from abroad. Washington has now turned China's reliance on American microchips against Huawei, the Chinese telecommunications giant that the Trump administration has labeled a national security threat. The Commerce Department last week restricted American firms from selling components and technology to the company, essentially cutting Huawei off from Google software, Qualcomm chips and more. The department said Monday that it would allow Huawei to continue doing business with American suppliers for 90 days to prevent disruption to mobile networks that use the company's equipment. Yet Washington's move still strikes at a national soft spot for China that has weighed on the minds of the country's leaders for decades." 

The Washington Post reports, "Stocks marched broadly higher on Wall Street in afternoon trading Tuesday, placing the market on track to snap a two-day losing streak. The rally followed the U.S. government's decision to temporarily ease off proposed restrictions on technology sales to Chinese companies. The news gave a boost to technology sector stocks, which took steep losses a day earlier when the Trump administration announced curbs on technology sales, aimed primarily at Chinese telecom gear maker Huawei. About one-third of that company's suppliers are American chipmakers and the move would crimp sales for companies including Qualcomm and Broadcom. Both companies posted gains Tuesday, along with other chipmakers. The U.S. government's decision to issue a 90-day grace period on technology sales to Huawei, ZTE and other Chinese companies also relieves some worry on Wall Street about yet another escalation in the trade war between the U.S. and China. The heightened tensions over trade have put the market in a rut for the last two weeks — the S&P 500 is down 2.8% for May, although the index still shows a gain of 14.3% for the year."