Top China Tech Stocks to Consider as U.S. Trade Tensions Ease

Chinese technology stocks, including JD.com JD, Kingsoft Cloud KC, NetEase NTES and Taiwan Semiconductor TSM, are experiencing renewed momentum following a landmark trade agreement between the United States and China. On Oct. 30, 2025, President Donald Trump and Xi Jinping signed a one-year deal in Busan, South Korea, during the APEC summit. The agreement reduces U.S. tariffs on Chinese goods from 57% to 47%, while China suspended rare earth export controls that had threatened global supply chains. Though significant structural issues remain unresolved, the deal provides businesses with temporary relief from escalating trade tensions.

Semiconductor Industry Demonstrates Resilience

Despite Western export restrictions, China's semiconductor sector continues advancing through strategic investments in mature node production. Semiconductor Manufacturing International Corporation (SMIC) and Hua Hong Semiconductor have expanded capacity aggressively, with Chinese foundries projected to control over 25% of global mature-node capacity among top-10 producers by year-end 2025. Notably, SMIC and Huawei are approaching 5nm chip production capabilities, substantially closing the technology gap with industry leaders. While overall semiconductor investment declined 9.8% in the first half of 2025, equipment investment surged 53% year over year, underscoring China's determination to achieve supply chain independence.

Electric Vehicle Dominance Accelerates

BYD has solidified its position as the global leader in pure electric vehicle sales, delivering 1.6 million units through third-quarter 2025 compared with Tesla's 1.2 million—a commanding 388,000-vehicle advantage. The company's third-quarter pure EV deliveries reached 582,500 units, representing 31.4% year-over-year growth. China's broader new energy vehicle market achieved historic penetration in September 2025, with 1.6 million NEVs sold, capturing 49.7% market share. BYD recently unveiled groundbreaking five-minute charging technology providing 250 miles of range, significantly outperforming Tesla's 15-minute Superchargers, while offering advanced driver-assistance systems at no additional cost.

AI and Robotics Expansion

China's artificial intelligence sector maintains global competitiveness through cost-efficient innovation. DeepSeek's R1 model delivers performance comparable to OpenAI while requiring only $6 million in training costs versus over $100 million for Western competitors. Alibaba responded by launching its Qwen reasoning model series and committing $52.4 billion to AI and cloud infrastructure over three years. The industry's shift toward open-source models has prompted major players, including Baidu, Tencent and Alibaba, to offer free AI services, accelerating adoption.

The robotics sector recorded extraordinary growth with 610 investment deals totaling $7 billion in the first nine months of 2025 — a 250% year-over-year increase. EV manufacturers like BYD and XPeng have integrated humanoid robots into factory operations, leveraging existing supply chains to drive robotics innovation.

Aerospace Ambitions Face Headwinds

While space exploration achievements include Chang'e-6's lunar sample return mission and advanced satellite technology, commercial aviation faces obstacles. COMAC delivered only seven C919 aircraft through October 2025 against a 30-unit annual target, highlighting difficulties in establishing China as a major aircraft manufacturer. Although U.S. export license suspensions for CFM International engines were lifted in July 2025, supply chain dependencies remain a strategic concern for the sector.

We believe that rapid advancements in Chinese technology and huge spending on its development efforts offer significant growth opportunities for investors. Our China Tech Screen is an invaluable source for identifying stocks with massive growth prospects in the space.

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4 Chinese Tech Stocks to Buy Right Now

JD.com presents a compelling near-term investment opportunity driven by robust revenue growth and strategic expansion initiatives. The company achieved an impressive 22% year-over-year revenue growth, reaching RMB357 billion in second-quarter 2025, with core JD Retail operating profit improving 38% to RMB13.9 billion. Management announced a €2.2 billion acquisition of CECONOMY, Europe's leading consumer electronics retailer with MediaMarkt and Saturn brands, which positions JD for transformative international expansion. Despite strategic investments temporarily pressuring margins, JD Retail's operating margin has expanded steadily for 13 consecutive quarters. With aggressive shareholder returns through a $5 billion buyback program, this Zacks Rank #2 (Buy) company combines growth potential with immediate capital allocation benefits for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kingsoft Cloud recently closed a substantial HK$2.8 billion capital raise in early October 2025, with management strategically allocating 80% toward AI business expansion and cloud infrastructure enhancement. Management signaled expectations for improved operating and EBITDA margins during the second half of 2025, positioning the company for profitability acceleration. Strategic partnerships with Xiaomi and Kingsoft Group indicate annual cloud revenues of RMB 4.78 billion by 2027, providing visibility into sustained growth. The substantial capital infusion strengthens this Zacks Rank #2 company's competitive position to capture accelerating AI compute demand while management's margin improvement guidance suggests the business is transitioning toward sustainable profitability.

NetEase presents a compelling investment opportunity built on fundamental strengths. The company's robust PC and mobile game pipeline, including successful titles like Marvel Rivals and FragPunk, positions it for sustained earnings growth through 2026. The successful reintroduction of Blizzard games in China has maintained record-high gross revenues, providing a stable revenue foundation. NetEase maintains an exceptional balance sheet with nearly $19 billion in cash and virtually no debt, enabling aggressive investment in research and development while maintaining financial flexibility. This Zacks Rank #2 company's proven ability to generate consistent revenue through frequent content updates for core gaming titles drives predictable free cash flow growth. Management's improved cost-control initiatives further enhance profitability prospects.

Taiwan Semiconductor presents a compelling near-term opportunity driven by robust fundamentals. Management raised full-year 2025 revenue guidance to mid-30s percent growth, reflecting structural AI-related demand that continues strengthening beyond earlier expectations. This Zacks Rank #2 company is narrowing its 2025 capital expenditure range to $40-42 billion to support customer growth, demonstrating confidence in sustained demand. Advanced 2-nanometer technology begins volume production in the fourth quarter of 2025, with accelerated ramp-up expected in 2026, positioning TSMC to capture exponentially growing token volumes requiring energy-efficient computing. Gross margins are improving toward 60% while maintaining technology leadership, offering investors attractive profitability alongside growth momentum in the AI semiconductor megatrend.

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