and tsmc uses american softwa re tsmc.o help design and build the chips. so under this new rule, tsmc cannot make chips for huawei and carry on trading with the us. which means for many companies, it is a choice between china and the us. the way chips are produced is very reliant on some tools and techniques that are owned bya and techniques that are owned by a very small number of american companies. and what the american government has done is basically so you can no longer use those, the chinese companies can no longer use those. so if they carry on using it it will be done illegally, or they will have to look for alternative sources. and if they find those alternative sources it starts to become much more like a black box to us because we have much less of an understanding from a security assurance point of view and that tips you over into the point where you say i cannot be sure enough about this now, so i will have to not use it. it is notjust the uk thatis use it. it is notjust the uk that is facing a problem either

under this new rule, tsmc can't make chips for huawei and carry on trading with the us.s it is a choice between china and the us. the way chips are produced is very reliant on some tools and techniques that are owned by a very small number of american companies. what the american government has done is basically say we can no longer use those, these chinese companies can no longer use those. if they carry on using it will be done illegally 01’ on using it will be done illegally or they are going to have to look for alternative sources. if the finals those alternative sources, it sta rts finals those alternative sources, it starts to become much more like a black box to us, because we have much less of an understanding from a security assurance point of view, and that tips you open to the point where you say, well, i can be sure enough about this now so i'm going to have to not use it. —— i can't be sure enough. it is notjust the uk facing the problem, germany, france, many have begun to use the cheaper and more advanced huawei 5g infrastructure. remember that chinese phr

and tsmc uses some american software to help design and build the chips.not make chips for huawei and carry on trading with the us. this means for many companies, it's a choice between china and the us. the way chips are produced is reliant on techniques that are owned by a small number of american companies and what the american government has done is site you can no longer use those, these chinese companies can no longer use those so if they carry on using it it will be done illegally or they will have to look for alternative sources and if they find those, it is more like a black box to us because we have less understanding from a security assurance point of view and that tip you into the point where you cannot be short enough about it so you will have to not using it. so, what can be done now? governments around the world and the operators are keen to open in some way and to introduce alternatives to nokia and ericsson. governments are keen to open the way for several players to become alternatives to these companies. welcome to the week in tech. this

in the recovery from the fall in march, it has not been led by tsmc inin korea or taiwan.t is smaller cap stocks that are leading the way which i find very interesting. part of that of course is that some of these smaller cap stocks are supporting the digitalization of the world economy. course the biggest theme in the world. for us, we believe the new economy is the economy and a lot of these stocks, even though they are smaller in size are supporting digitization everywhere, whether for theom the support 5g base stations or to data centers or other parts of the infrastructure needed for a digitized world. shery: this gtv chart on the bloomberg showing how amazing the rally has been on the kospi. we have seen nine straight days of gains and we have halted a little bit on friday still in overbought territory. does overbought mean that the rally has to stop or will it continue given the factors that you just mentioned? teresa: it is so hard to predict because this is such a liquidity driven market. we just had an announcement yesterday from the people's bank of china that t

we'll be watching the shipment including tsmc, media tech and others that are used by huawei as well. stocks we're watching in terms of that market. we are also getting breaking news when it comes to the situation with that second attack on the new zealand stock exchange. they are saying it is working to repair the system connectivity issue. we earlier heard from a spokesperson from the exchange saying the problem today was similar to yesterday's offshore denial of service attack. this is ploomberg. ♪ >> welcome to bloomberg markets china event. imt tom mackenzie. ivid: we are counting down -- am tom mackenzie. david: we are counting down. hong kong and shanghai i back in the spotlight. the simultaneous