China stocks slip on trade concerns; HK ends lower
At the close, the Shanghai Composite index was down 0.03% at 3,503.78 points, while the blue-chip CSI300 index was down 0.3%.
US President Donald Trump on Tuesday said the country would fight China 'in a very friendly fashion'.
'In our base case, we assume that the US tariff rate on China would stay unchanged at 30% — but the recent escalation of US tariffs on other economies is likely to further dampen global trade momentum,' Morgan Stanley economists said in a note.
'In particular, the US has started addressing transhipment concerns by introducing a two-tiered tariff structure on imports from Vietnam — 20% for direct imports and 40% for those deemed transhipments from China. If similar measures are extended to other countries, this could further pressure China's export performance.'
In Hong Kong, the benchmark Hang Seng index ended down 0.29% at 24,517.76 points. Tech giants listed in Hong Kong dropped 0.24%.
Nvidia's planned resumption of sales of its H20 AI chips to China is part of US negotiations on rare earths, US Commerce Secretary Howard Lutnick said on Tuesday, and comes days after its CEO met Trump.
Rival AI chipmaker AMD also said the US Department of Commerce would review its licence applications to export its MI308 chips to China.
Meanwhile, Nvidia CEO Jensen Huang described AI models from Chinese firms Deepseek, Alibaba and Tencent as 'world class' and said AI was 'revolutionising' supply chains, at an exhibition in Beijing on Wednesday.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.21%, while Japan's Nikkei index closed down 0.04%.
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