The U.S. is no longer just in a “trade war” with China. What began under President Trump as a tariff battle has evolved into a broader economic rivalry. In 2025, tensions span technology, semiconductors, energy, and data security. For traders, that means Chinese stocks remain volatile — and filled with both risk and opportunity.
Chinese investment in the U.S. has slowed, American regulators are scrutinizing Chinese listings, and Washington has tightened controls on advanced technology exports. Meanwhile, Beijing continues pushing for self-reliance. The result? U.S. and Chinese markets can move sharply when headlines hit.
That uncertainty can create fear, but it also creates opportunity. When rules of the economy change, adaptable traders can position themselves for profits. Just like I teach, the market’s reaction matters more than the politics.
Table of Contents
What Are Chinese Stocks?
Chinese stocks are simply shares of companies based in China, many of which trade on U.S. exchanges through ADRs. This includes well-known names like Alibaba and Tencent, as well as smaller firms in e-commerce, fintech, and artificial intelligence.
But in today’s rivalry, “Chinese stocks” often also means U.S. companies with heavy exposure to Chinese customers or supply chains. Think Apple, Tesla, and chipmakers like Nvidia, which rely on Chinese demand or manufacturing.
Many Chinese companies are listed on the Nasdaq or NYSE, making them accessible through common trading platforms. ETFs like KWEB, which tracks Chinese internet stocks, give another way to gain exposure. But access doesn’t eliminate risk. As I often tell my students, just because a stock is available doesn’t mean it’s a good buy.
The U.S.–China Rivalry in 2025
Since 2017, tariffs and sanctions have been the tools of competition. But in 2025, the rivalry centers on semiconductors, artificial intelligence, and clean energy. The U.S. has restricted advanced chip exports, while China has retaliated with limits on rare materials used in batteries and electronics.
Markets continue to react strongly. Headlines about sanctions or supply chain disruptions often trigger sharp swings in the Dow, S&P 500, and Nasdaq. Chinese indexes like the Shanghai Composite and Hang Seng have lagged global markets, reflecting slowing growth and regulatory pressure.
Despite the headwinds, opportunities exist. Chinese equities trade at some of their lowest valuations relative to U.S. stocks in more than a decade. That discount appeals to value seekers, but it reflects real risks — including unpredictable government intervention. When I trade, I never assume “cheap” equals safe. Volatility can cut both ways.
Chinese Stocks to Watch
Chinese stocks face challenges beyond company performance. Data privacy rules, government restrictions, and U.S. oversight of accounting filings all create uncertainty. Some companies even face delisting risk in the U.S.
At the same time, sectors tied to AI, semiconductors, and clean energy may benefit as both the U.S. and China pour capital into building domestic capacity. ETFs and funds tracking these industries can provide exposure without betting on one name.
For traders, the opportunity isn’t in predicting politics — it’s in reacting to price action. When Chinese stocks move, they often move fast. That volatility offers setups, but only for those prepared with discipline and risk management.
These are some of the leaders!
Alibaba (NYSE: BABA)
Alibaba, often called the “Amazon of China,” remains the country’s largest e-commerce and cloud services company. Its shares lost over $600 billion in market cap from 2020 highs, battered by regulatory crackdowns and slower consumer spending. In 2025, BABA trades in the $70–$90 range, far below its peak.
Yet, the company has stabilized. Its cloud business is showing growth, and Beijing has eased pressure on large internet firms. For traders, Alibaba’s chart provides insights into overall sentiment toward Chinese tech. If it trends upward, smaller-cap Chinese stocks may follow. But for me, high-priced names like BABA don’t fit my preferred setups.
Baozun (NASDAQ: BZUN)
Baozun once offered strong growth by helping foreign brands sell online in China. But in recent years, it has struggled with slowing sales and increased competition. In 2025, the stock trades under $5, down from $60+ highs in 2018.
For speculative traders, this volatility may look attractive. But declining fundamentals make it risky. Baozun has potential as a bounce play, but I always stress: a low price doesn’t make a stock a good buy. You need strong charts and confirmed setups before risking capital.
More Breaking News
- ImmunityBio Authorized to Roll Out ANKTIVA in Europe and Saudi Arabia
- Nu Holdings Stock Rises Amid Recent Strategic Developments
- Inhibikase Therapeutics Stock Faces Challenges Amid Financial Uncertainty
- Ichor Holdings’ Stock Target Raised Amid Strong Q4 Performance and Solid Projections
Tencent Holding (OTCMKTS: TCEHY)
Tencent remains one of the world’s most valuable tech companies, with businesses spanning gaming, social media, and payments. With a market cap above $400 billion, it competes globally with firms like Meta and Microsoft.
The stock trades around $45–$50 in 2025, still well below its pre-2018 highs but relatively stable compared to smaller peers. For long-term investors, Tencent offers diversification across multiple products and services. For traders, its price action tends to be slower, making it less attractive for quick moves. Still, watching Tencent helps gauge China’s tech sector strength.
Weibo (NASDAQ: WB)
Weibo, often dubbed the “Chinese Twitter,” once looked like a growth engine. User numbers climbed, and the company turned profitable. But growth has slowed, and new competition from platforms like Douyin (TikTok’s Chinese version) has taken market share.
The stock now trades in the teens, a fraction of its 2018 highs. While it has seen occasional spikes, its long-term chart shows steady decline. As I teach, weak long-term charts are red flags. Even if short squeezes happen, relying on them is gambling, not trading.
The Bottom Line on Chinese Stocks
So is it worth buying Chinese stocks in 2025? Maybe. The sector is cheap compared to U.S. equities, and if relations thaw, upside exists. But the risks are high — from regulation to slowing growth to unpredictable headlines.
For me, the answer is mostly no. I’d rather focus on clearer opportunities. Still, I keep an eye on Chinese leaders like Alibaba and Tencent, because their charts often foreshadow sentiment shifts.
As I teach, adaptability is everything. Whether it’s tariffs in 2018 or AI rivalries in 2025, conditions change. Your edge comes from preparation, patience, and trading only when your setups align.
Trading Challenge
Wouldn’t you love to be the type of trader who can easily adapt to changing market conditions? There’s a way you can become that trader — study.
I created my Trading Challenge to help all of the traders who asked me for advice after I hit the public eye thanks to my TV appearances and following my hedge fund experience.
I had to learn a lot of things the hard way … So I figure why not help new traders benefit from what I’ve learned over the past 20 years?
As a teacher, I don’t focus solely on facts and figures. My true goal is to help you become a self-sufficient trader so that you can adapt to different market conditions … like trade wars.
In the Challenge, you’ll join a group of trading peers who are well on their way to becoming strong, self-sufficient traders. Be one of them. Grow with them.
You’ll have plenty of great resources, like a huge video library, live webinars, live trading sessions, and much more.
I’m not scared to lay down the law — I’ll tell it to you straight! So only motivated, hard-working students need apply…
I don’t like lazy people, and I don’t like it when people think they can get rich quick by trading. I’m serious about this Challenge, and I want dedicated students who care just as much about their futures. Are you willing to do what it takes?
How has the trade war affected your trading? How are you adjusting your strategies to the tariff tensions? Leave a comment and let me know!
Leave a reply