Trade Tensions Rattle China's Economy as Stocks Slide

China's stock markets faced a dip on Wednesday due to sluggish services sector growth and growing trade tensions with the U.S. The Shanghai Composite Index fell slightly, while the CSI300 index saw more significant declines. Trade frictions are escalating, particularly impacting the technology and semiconductor sectors.

China's stock markets experienced a downturn on Wednesday, influenced by a slowdown in the services sector and increasing trade tensions with the United States.

At midday, the Shanghai Composite Index had dropped 0.07%, while the blue-chip CSI300 index fell 0.21%, driven by declines in consumer staples and real estate sectors.

The escalating trade dispute over U.S. tariffs and China's export bans on critical minerals could severely disrupt global supply chains, particularly affecting the semiconductor and technology sectors.

(With inputs from agencies.)