Chinese stocks slide as Trump threatens tariffs, accuses Beijing of holding world ‘captive’
U.S. trading in Chinese stocks fell on Friday after former President Donald Trump threatened to sharply increase tariffs on Chinese imports if he returned to office and warned that China had become “too hostile.”
Alibaba’s And baidu While each lost about 8% of its value JD.com And PDD Holdings fell 6.6% and 5.2% respectively. iShares MSCI China ETF (MCHI), which tracks large U.S.-listed Chinese companies, fell 5.2 percent.
iShares MSCI China ETF Friday
The selloff underscored investors’ renewed concern about escalating U.S.-China tensions, which have flared periodically amid disputes over trade, technology and national security.
Trump was impeached China is holding the world ‘captive’ thanks to its dominance in rare earth metals. Earlier this week, Beijing tightened its grip on the sector, requiring foreign companies to obtain government licenses to export products containing rare earth elements that account for 0.1% or more of their total value.
“Friday served as a reminder of how emotion and uncertainty can drive markets,” said Mark Hackett, chief market strategist at Nationwide. “It is too early to say for sure whether the comments will trigger the next phase of the trade dispute between the US and China or further public negotiations, but investors have opted for a wait-and-see tactic.”
Chinese stocks have made a strong recovery this year, thanks to signs of economic stabilization and renewed investor optimism after years of underperformance. iShares MSCI China ETF Even after Friday’s pullback, it’s still up 32%.
— CNBC’s Sarah Min contributed reporting.
