US-CHINA Trade Tensions Simmer As China’s Tech Sector Defies US Pressure

Huang’s Remarks Come As The Spotlight on ai Chips Intensifies, With Reports Suggesting The US May Expand Its Export Blacklist to Include Addrational Chinese Semiconductor Firms. China Warned that entities compllying with such measures May Face Legal Consequences, Calling The Actions Discriminatory.

Morgan Stanley Raises China’s Growth Forecasts While Tech-Sector Frictions Persist, Broader Trade Tensions Have Eased, Supporting A More Optimistic Economic Outlook. On May 21, CN Wire Reported that Morgan Stanley (MS) Revised ITS 2025 and 2026 GDP Growth Projects for China to 4.5% and 4.2%, Respectively, Up From 4.2% and 4.0%. The US Banking Giant Rev was Forecasts in Responsts to Lower Tariffs and EASING US-CHINA Trade Tensions.

Still, The Bank Highlighted Key Risks, Including Housing Market Stress and Soft Household Spending, Despite Beijing’s Stimulus Efferts.

China’s Real Estate Slump Deepens Housing Conditions Remain Troublesome, Undermining Consumer Confidentnce. The Kobeissi Letter Reported:

“New Home Prices in China’s 70 Major Cities Droped 4.6% Year-on-Year in April. Existation Home Prices Fell 6.8%, After A 7.3% Drop in March. Chinee Home. Meanwhile, Property Investment Declined 10.3% Year-Over-Year in The First 4 MONTHS OF 2025. All While New Construction Starts by Property Developers Fel. A WORSE RECESSION THAN 2008. ”

The Slump has significantly Impacted Consumer Sentiment, Reinforcing A Higher Savings Rate. A Sustaned Recovery in the Houshing and Labor Markets Remains Crucial for China’s Transition to A Consumption-Driven Economy.

Recent Economic Indicators Have Underscored the Challenges Beijing Faces to Boost Consp. April Data Showed Persenti Deflationary Pressures, While Slowing Retail Sales.

Notably, Morgan Stanley Expects Beijing to Roll Out Fever Stimulus Measures As Trade Tensions Ease. But Weak Consumption May Still Leave China Vulnerable to Global Demand Shocks.

East Asia Econ Noted Fading Momentum, Stating:

“China-Qic-Up is already fading. Headline yoy data are still beefiting from the Q4 Pick-Up, Meaning Another 5% Growth Quarter Is Likely. But Subsequently, Growth Is Slowing Turnaround in constraction that might put a sustainable floor under the other.

As of MID-Q2 2025, Macroeconomic Uncertainty Continues to Test Investor Sentiment.

US Markets Trail Hong Kong Tech Stocks As Economic Risks Linger, Market Performance Has Diverged Sharply. The Hang Seng Index Has Gained 18% Year-To-Date (YTD), Outpacing Us Markets as Hong Kong and Mainland China-Listed Tech Stocks Outperform. The Hang Seng Tech Index Is Up 18.8%, While the Mag 7 Group Is Down 5.51%, Dragging The Nasdaq Composite Index to A 2.27%YTD LOSS.

Meanwhile, Mainland China’s CSI 300 is Down 0.35%, and the Shanghai Composite Index Has Ganeded 1.04%. Notably, China’s Tech Sector Continues to Lead, With The Roundhill China Dragons Etf Soaring 27% YTD.