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News Topical, Digital Desk : Chinese Stocks Crash: Chinese stocks traded in the US recorded a sharp decline. This was due to Donald Trump's threat to impose 'heavy tariffs' (Donald Trump China Tariffs) on all imports from China. Following Trump's threat, shares of Alibaba and Baidu fell by nearly 8 percent. JD.com fell by 6.6 percent and PDD Holdings by 5.2 percent. The iShares MSCI China ETF (MCHI)*, which tracks major Chinese companies listed on the US market, fell by 5.2 percent.
US-China Trade War Fear
This decline reflects the deep investor anxiety that emerges in the market every time US - China tensions escalate. In the past few months, disputes between the two countries have intensified over trade, technology, and national security. Stock Market: Trump's threat has created global fear! Market plunges 900 points, resulting in a loss of $1.56 trillion. Trump accuses China of making the world dependent on the supply of rare earth minerals. Beijing recently implemented a new rule that requires any foreign company to obtain a license to export products containing 0.1% or more of rare earth elements. Nationwide's Chief Market Strategist Mark Hackett said it shows how uncertainty can shake the market. He also said that it's too early to say whether this is the start of a new trade war or simply part of the ongoing public talks. It's worth noting that Chinese stocks have seen a strong recovery in the past few months. The MCHI ETF is still up 32% year-to-date, but Trump's latest statement has shaken investor confidence. Experts believe that if this tension escalates, it will have a lasting impact on the Chinese tech sector and further increase volatility in global markets.
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