Stocks of US-listed Chinese companies slumped on Wednesday, with Alibaba down more than 4% in pre-trading.
Other Chinese stocks also suffered. JD.com, another Chinese retailer listed in the US, was down more than 3%. Chinese internet company NetEase is down 2.8%, while online retailer Baozun was down more than 5%.
China’s government plans to slap a 25% tariff on automobiles, soybeans and chemicals, according to reports by Bloomberg, heightening fears of a trade war. The retaliatory response would be the equivalent of $US50 billion worth of tariffs on more than 100 different American products.
China’s response comes less than 24 hours after the US announced an initial list of the products that will be subject to roughly $US50 billion in new tariffs. The list would impose tariffs on raw materials, construction machinery, agricultural equipment, electronics, medical devices, and consumer goods in China.
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