Why Chinese Tech Stocks Like Alibaba Crushed It on Monday

From Nasdaq: 2025-04-14 19:28:00

Chinese tech stocks experienced a surge as trade tensions eased with the U.S., with Alibaba Group seeing a 6% gain, Tencent Holdings rising 3%, and JD.com up almost 5%. President Trump announced exemptions on tariffs for tech goods, benefiting Apple stock. Chinese tech companies may still face a 20% tariff on certain goods.

The exemptions were granted to give Chinese tech component manufacturers time to set up operations in the U.S. to rebuild America’s manufacturing base. Chinese tech manufacturers did not immediately commit to moving operations. The trade conflict’s outcome remains uncertain, but the tech industry could benefit in the long run.

Investors are optimistic about the tech industry’s resilience in the trade conflict. The industry’s power and influence may lead to a more permanent concession from the U.S. administration. Considerations about investing in Alibaba Group should include the potential long-term effects of the trade conflict on the sector.

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