Chinese smartphone companies like Huawei are rebounding in their home market, giving a boost to domestic suppliers — and increasing the pressure on Apple . It’s a reflection of a geopolitically-driven shift in the tech industry. A clear takeaway from last week’s meeting of the U.S. and Chinese presidents is that American restrictions on sales of high-end tech to China will not be going away. While the summit could reduce the risk that tensions escalate in the near term, Morgan Stanley analysts said that “‘competitive confrontation’ will likely remain for now.” That “does not mean a complete decoupling, but instead continued tech competition and derisking away from China,” the analysts said in a note Thursday. Chinese President Xi Jinping called on the U.S. to lift its sanctions and provide a non-discriminatory environment for Chinese companies, according to a readout. But the U.S. said President Joe Biden emphasized the need to prevent advanced U.S. tech from undermining national security. In fact, Raymond James analysts said in a note Thursday their conversations with Washington, D.C., contacts supports expectations for more tech export controls. The Biden administration has also taken pains to emphasize the majority of trade with China is not affected by the restrictions, and that it does not target consumer-related applications. Huawei suppliers outperforming But investors are already moving. I …
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