China Tech Faces Worry Beyond Tariffs After $350 Billion Wipeout

Even as China’s tech stocks begin to recoup some of their recent big losses, some investors and analysts are eyeing looming concerns that may have a worse impact than Donald Trump’s tariffs.

The Hang Seng Tech Index has shed more than $350 billion in market value since a March high, though it has gained more than 10% over the past four sessions. While China’s rapid AI development remains a key positive, heightened geopolitical tensions are at the forefront at the moment.

US actions against China such as restrictions on financial holdings or further sanctions are a “serious risk,” according ...