Should You Buy or Sell Nvidia Stock on China Trade Concerns?

The escalating trade tensions between the United States and China, which more recently focused on electric vehicles (EV) and solar panels, have circled back to a familiar flashpoint between the two countries: semiconductor chips. Citing national security concerns, the U.S. unleashed a plethora of export control rules in October 2022 targeting China, the largest exporter of chips in the world - but the clampdown proved ineffective, as friendly nations like Japan and the Netherlands have continued to supply crucial semiconductor manufacturing equipment. 

As a result, the U.S. has tried different approaches to choke off China's access to advanced semiconductor technology, culminating in Wednesday's reports that the Biden administration is considering the most severe trade restrictions available if companies like Dutch giant ASML (ASML) continue to ship to China.