Trade Tensions Weigh on Chinese Stocks Amid Tech Negotiations

Chinese stocks encountered setbacks on Wednesday due to ongoing trade tensions with the United States. The Shanghai Composite Index saw a minor decline of 0.03%, closing at 3,503.78 points, while Hong Kong's Hang Seng Index dropped 0.29%, ending at 24,517.76 points.

This came as Nvidia's decision to resume the sale of its H20 AI chips to China was announced, a move that is intertwined with U.S. negotiations over rare earths. U.S. Commerce Secretary Howard Lutnick confirmed the development, following a meeting between Nvidia's CEO and the U.S. President.

Meanwhile, U.S. tariff policies are under scrutiny as economists predict that such measures might hinder global trade. Morgan Stanley economists noted that if similar tariffs affected other countries, China's export performance could face further pressure.

(With inputs from agencies.)