Chinese stocks recover from early losses amid trade concerns

China?s stock markets ended mixed on Friday, recovering from earlier losses as investors focused on upcoming trade talks between China and the European Union (EU). The Shanghai Composite closed almost unchanged at 3,813.8, while the Shenzhen Component rose 0.17% to 12,641.9.

Trade tensions remained in focus after European industry groups urged the EU to take immediate action against unfair Chinese trade practices. They warned that these practices could hurt European manufacturers and lead to further job losses. The talks follow three months of discussions over the EU?s trade deficit with China and Beijing?s restrictions on exports of rare earths and other critical minerals.

Chip and optical stocks came under pressure as investor enthusiasm for China?s artificial intelligence (AI) ambitions cooled. Concerns over high stock valuations also weighed on the sector. Cambricon Technologies rose 0.51% and SMIC gained 1.25%, while Zhongji Innolight fell 0.98%, Eoptolink Technology dropped 2.19% and NAURA Technology declined 1.05%.

For the week, both major indexes ended lower. The Shanghai Composite fell 0.74%, while the Shenzhen Component lost 1.91%, reflecting continued caution among investors.

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