While the Trump Administration’s tariffs have targeted a variety of nations, there is one main target for the import duties: China. Expanding on his policies during his first term and the continuation of those policies during the Biden Administration, the current round of tariffs has continued to put pressure on China’s economy and its equities.
The question is: What comes next and are Chinese stocks still a buy for investors?
The answer may be yes, with some caveats. With Beijing announcing new stimulus measures and looking abroad for new trading partners, stocks with Asia’s Dragon economy look very cheap. Meanwhile, a new trade deal with the U.S. may be brewing. With that, Chinese stocks may still offer a compelling value for investors.