FX.co ★ China Stocks Climb as Trump Unveils New Tariff Rates

The Shanghai Composite Index advanced by 0.7%, closing at 3,497, while the Shenzhen Component Index increased by 1.47% to reach 10,588 on Tuesday. This upward trend in mainland stocks propelled them to multi-month highs following President Trump's announcement of new tariff rates on 14 countries with an extended negotiation deadline set for August 1. Despite this, tensions simmered as Beijing cautioned Washington against reigniting trade disputes by potentially reimposing tariffs on Chinese goods next month. Furthermore, China issued a warning of possible retaliatory measures against nations collaborating with the US to exclude China from global supply chains. Domestically, investors remained circumspect ahead of the release of crucial inflation and trade data expected later this week, which could shed light on the economic impact of evolving US-China trade relations. Technology stocks spearheaded the gains, with notable performances from Foxconn Industrial, rising by 10%, Zhongji Innolight by 7.2%, and Sungrow Power by 9.5%.