TMTPost --  U.S.-listed Chinese shares outperformed American stock market after China immediately launched retaliatory measures against Washington’s extra tariffs on Tuesday.

Credit：Xinhua News Agency

The Nasdaq Golden Dragon China Index, which tracks 65 China-exposed U.S.-listed companies, closed around 2% higher on Tuesday, snapping a three-day losing streak. The U.S. benchmark S&P 500 index shed 1.2% and wiped out all the gains during the four-month post presidential election.

The American depositary receipts (ADRs) of Baidu, China’s top search engine operator, rose 3.4%. ADRs of China’s leading video platform Bilibili popped 5.8%. Shares of Fangdd Network Group Ltd., operator of a leading online real estate marketplace in China, climbed 4.9%. Shares of JD.com and its peers PDD Holdings Inc., Temu parent, gained 1.8% and 0.7%, respectively, while Alibaba Group, the most valuable Chinese firm listed in U.S., slid 0.7%.  Li Auto shares added 1.1%, but two other Tesla’s Chinese rivals Nio and Xpeng fell around 0.2%.

Exchange-trade funds (ETFs) tracking the investment in Chinese equities accordingly rallied. The Roundhill China Dragons ETF, the KraneShares CSI China Internet ETF and the Invesco China Technology ETF ended Tuesday with gains between 2.4% and 3.1%.

China unveiled additional tariffs on some U.S. goods earlier Tuesday after the U.S. imposition of an additional 10-percent tariff on products imported from China, effective from the same day.

The new tariffs on products imported from U.S. will go into effect from March 10. An additional 15% tariff will be imposed on imported chicken, wheat, corn and cotton originating from the United States, and sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products will be subject to an additional 10% tariff, according to a statement of the Customs Tariff Commission of the State Council.

The Ministry of Commerce (MOFCOM) also announced China decided to add 10 American companies, including TCOM, Limited Partnership, to its unreliable entity list, prohibiting them from engaging in import and export activities related to China. The companies will also be banned from making new investments within the country.Disregarding strong objections from China, these 10 companies have in recent years either participated in arms sales to Taiwan or engaged in so-called military technology cooperation with Taiwan, the ministry said.

Prior to the announcement, a spokesperson with the MOFCOM  slammed the Trump administration's doubling extra tariffs on China to 20%. The United States has repeatedly shifted the blame and imposed additional tariffs on imports from China -- citing the fentanyl issue as a pretext, regardless the fact that China is one of the countries with the strictest and most rigorously enforced anti-drug policies in the world, according to the spokesperson.

"What the U.S. side has done is a typical act of unilateralism and bullying in disregard of facts, international trade rules and the voices of all parties," the spokesperson said. The person warned will take countermeasures to firmly safeguard its own rights and interests.

The recent countermeasures are well targeted and demonstrate China’s determination, Yuyuan Tantian, a social media account affiliated with China Central Television (CCTV) commented in a post later Tuesday. It noted China, as the world's largest importer of agricultural products, is the largest export destination for American agricultural products, accounting for nearly one fifth of the total U.S. agricultural exports.

China's moves show that if U.S. insists on imposing tariffs, China will resolutely hit back and fight to the end, and the United States will pay a price and shoot itself in the foot, Yuyuan Tantian cited professionals.

Chinese foreign ministry spokesperson Lin Jian reiterated China's opposition to U.S. tariffs, and noted anyone using maximum pressure on China is picking the wrong guy and miscalculating.

“If the U.S. truly wants to solve the fentanyl issue, then the right thing to do is to consult with China on the basis of equality, mutual respect and mutual benefit to address each other’s concerns. If the U.S. has other agenda in mind and if war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end,” said Lin.

China’s retaliatory tariffs followed a “restrained, targeted approach aimed at causing pain to those industries that matter the most to the supporters of the Trump administration,” said Alfredo Montufar-Helu, head of the China Center for the Conference Board. He believes China left room for negotiations to potentially avoid even more damaging tariffs in the future.