Chinese stocks experienced slight weekly gains amidst ongoing trade tensions with the United States, as investors remained hopeful for a resolution. On Friday, April 18, 2025, the major Chinese stock indices closed with minimal fluctuations, yet the week ended on a positive note, reflecting a 0.6 percent increase in the CSI 300 index, which encompasses the largest companies listed on the Shanghai and Shenzhen exchanges. The index settled at 3399 points.
Despite the overall stability, the Shanghai Composite Index saw a minor decline of 0.1 percent, ending an impressive streak of eight consecutive gains. This performance comes on the heels of U.S. President Donald Trump's comments hinting at a potential de-escalation of the ongoing tariff disputes between the two largest economies in the world. Since April 2, 2025, the CSI 300 index had lost approximately three percent due to the announcement of reciprocal tariffs, which negatively impacted global markets. However, state-supported investors and daily trading limits on Chinese stock exchanges helped mitigate the downturn.
Meanwhile, the Hong Kong stock market remained closed for local holidays, but it is set to resume trading on Tuesday, April 22, 2025. During the shortened trading week, the Hang Seng Index recorded a robust increase of 2.3 percent. In sector-specific movements, consumer staples shares dropped by one percent, adversely affecting the overall market performance, while the financial sector saw gains of about 0.7 percent. Additionally, the BII 50 index, which tracks emerging companies in Beijing, rose nearly two percent.
In the tech sector, the semiconductor index within the CSI experienced a downturn of approximately 1.1 percent, despite Nvidia's CEO Jensen Huang emphasizing the significance of the Chinese market for the company. This statement comes in the wake of a U.S. ban on selling advanced AI chips to China, raising concerns about the future of technology trade between the two nations.
Looking ahead, investors are anticipating that the People's Bank of China will maintain its key interest rates unchanged during the monthly fix scheduled for Monday. Furthermore, a press conference organized by Chinese regulators is expected to unveil plans to enhance foreign investment in the services sector.
On the other side of the trade dispute, the U.S. has implemented substantial tariff increases on Chinese imports, with rates potentially reaching as high as 145 percent. This has sparked a wave of satirical and humorous content across Chinese social media platforms, mocking American reliance on Chinese-made products. In a notable post, a young man humorously displayed his empty hands after claiming to have purchased American goods.
These comedic clips have gone viral on TikTok, a platform banned in China but accessible through VPNs. The creator of these videos, known as Bodaowanguang, expressed that these posts serve as a means to vent frustration and counteract Western propaganda. Bodaowanguang, who moved to California in 2019, stated he returned to China after four years due to perceived biases against his home country.
In these videos, the creators highlight the irony of American critiques of Chinese products while simultaneously benefiting from them. One viral clip features a humorous depiction of overweight American workers struggling with sewing machines, accompanied by the caption "Make America Work Again." Another post pointed out that a dress worn by White House Press Secretary Caroline Leavitt was sourced from the Chinese e-commerce platform Taobao.
These satirical posts have garnered millions of views, providing an outlet for Chinese internet users to express their sentiments regarding the trade tensions. Some users even suggested that Americans could avoid the high tariffs by traveling to China to purchase goods directly. One TikTok video featured a man claiming to work in a Birkenstock factory in Yiwu, offering shoes directly from the factory for only ten dollars.
As the trade war continues, the humor surrounding the situation carries a deeper sense of nationalism, according to Guine Bofe, a professor at Shanghai University of International Studies specializing in social media. However, there is an underlying anxiety about the potential economic repercussions of the trade conflict on China's export-driven economy. Some comments warning of these potential impacts have reportedly been deleted by online censors.
In summary, the current state of Chinese stocks reflects a complex interplay of optimism and caution amid ongoing trade tensions with the U.S. As both nations navigate this challenging economic landscape, the reactions from their respective populations—ranging from investor sentiment to social media satire—illustrate the multifaceted impact of these developments.
