Zinger Key Points
- U.S.-listed Chinese stocks fell as reports surfaced that Shein and Temu may be added to the U.S. 'forced labor' list under Trump.
- China retaliated against U.S. tariffs with higher levies on coal, LNG, and vehicles, plus export bans on key minerals for tech production.
- Next: Access Our New, Shockingly Simple 'Alert System'
U.S.-listed Chinese stocks Alibaba Group Holding BABA, Baidu, Inc. BIDU, JD.com, Inc. (NASDAQ: JD), PDD Holdings Inc. (NASDAQ: PDD), NIO Inc. (NYSE: NIO), Li Auto Inc. LI, and XPeng Inc. (NYSE: XPEV) gave up their gains Wednesday.
Reports indicated that the Trump administration is exploring adding Chinese e-commerce platforms Shein and PDD’s Temu to the ‘forced labor’ list.
According to the Reuters report, both companies denied the use of forced labor.
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Recently, China slapped tariffs, export bans and company blacklists on U.S. companies, including Alphabet Inc’s GOOG GOOGL Google, on notice for possible sanctions, in retaliation to U.S. President Donald Trump’s 10% levies against its Asian counterpart.
China increased tariffs by 10% to 15% on certain U.S. imports, including coal, liquified natural gas, crude oil, agricultural machinery, and vehicles.
The Asian country imposed export restrictions on key minerals like tungsten, tellurium, bismuth, molybdenum, indium, and their related metallic compounds.
Goldman Sachs‘ Andrew Tilton noted China is imposing an additional 12% tariff on $14 billion in U.S. goods, compared to the U.S. implementing a 10% tariff on $525 billion worth of Chinese products.
The U.S. had already imposed a semiconductor technology embargo against China, restricting its access to sophisticated artificial intelligence technology from the likes of Nvidia Corp NVDA and Taiwan Semiconductor Manufacturing Co TSM, ASML Holding ASML, Micron Technology, Inc MU.
Meanwhile, China retaliated with the emergence of the open-source artificial intelligence platform DeepSeek R1, which was developed under $6 million and reportedly outperformed leading U.S. models like those from OpenAI.
PDD Stock Prediction For 2025
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at PDD Holdings, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For PDD Holdings, the 200-day moving average sits at $123.03, according to Benzinga Pro, which is above the current price of $114.05. For more on charts and trend lines, see a description here.
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: PDD stock traded lower by 3.35% to $110.51 premarket at the last check on Wednesday.
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