Chinese Tech Stocks Plunge as Trump Threatens 100% Tariffs

Core Insights - U.S.-listed Chinese technology companies Alibaba, JD.com, and PDD experienced significant selloffs due to renewed U.S.-China trade tensions, with declines of 8.5%, 6.2%, and 5.3% respectively, marking one of their steepest declines in months [1][2][6] - The downturn was triggered by President Trump's announcement of a potential 100% tariff on all Chinese imports in response to China's recent export controls on rare earths, which the U.S. views as a hostile action [2][3] - The threat of tariffs has raised concerns about further disruptions to supply chains, particularly in the semiconductor and electronics sectors, and could lead to increased import costs and inflationary pressures [4] Market Reactions - The broader U.S. market also reacted negatively, with the S&P 500 dropping 2.7% and the Nasdaq Composite falling 3.6%, as investors sought safety amid rising geopolitical uncertainty [5][6] - The market sentiment has turned defensive, reminiscent of the protectionist policies seen during the 2018-2019 trade war era, leading to heavy losses for technology and export-oriented companies [4][5] Investment Considerations - Despite the recent downturn, the fundamentals of major Chinese Internet companies remain relatively sound, suggesting that the current slump may present a potential entry point for long-term investors [5]