By ED CARSON

China stocks are rebounding once again amid hopes that a fierce U.S. trade war will ease, though Trump tariffs remain extremely high. Several Chinese stocks that trade in the U.S. are showing strength.

Tesla (TSLA) rivals BYD (BYDDF) and Xiaomi (XIACY), internet giants Alibaba (BABA) and Tencent (TCEHY), as well as fintech Qifu Technology (QFIN) are all near buy points.

A number of other stocks are still worth watching, including online brokerage Futu Holdings (FUTU), travel plays Trip.com (TCOM) and Atour Lifestyle (ATAT).

U.S.-China Trade War

The U.S. has imposed 145% tariffs on Chinese goods, though electronics currently have 20% tariffs. China has retaliated with 125% tariffs on most U.S. goods.

High-level U.S.-China trade talks are set to take place Saturday in Switzerland. Various reports said the U.S. could cut China tariffs to around 50%-60%, perhaps the outer limit for substantial trade. But President Donald Trump said Friday that 80% "seems right."

While most Chinese companies don't have significant direct exposure to the U.S., the trade war is hitting the U.S. and Chinese companies, with the pain expected to deepen over time.

Top China ETFs

Investors wary of buying an individual Chinese stock could choose ETFs such as KraneShares CSI China Internet ETF (KWEB), iShares China Large-Cap ETF (FXI) and Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR). But these ETFs are prone to big gap-ups and gap-downs as well.

Top China Stocks To Buy Or Watch

BYD Stock

BYD stock is the world's largest electric vehicle maker, recently passing Tesla in terms of fully battery electric vehicles (BEVs), revenue and net income. BYD also sells batteries for storage and to other EV makers. It also has an electronics division that makes some cell phone components and assembles handsets, including some Apple iPhones.

EV sales are booming, with a big push in self-driving and super-fast charging tech. Overseas sales are racing higher thanks to several new "roll on, roll off" car transport ships and a plant in Thailand. A Brazil plant should be open by mid-year, with factories in Hungary, Indonesia and Turkey beginning operation in 2026.

BYD earnings surged 98% in the first quarter, the second straight quarter of accelerating growth. Revenue rose 36% to $23.5 billion, slightly missing views.

BYD stock is up 46.3% in 2025 as of May 9.

A cup-with-handle base has formed with a 53.35 buy point.

BYD, listed in Hong Kong and Shenzhen, trades over the counter in the U.S. Its U.S. shares often have mini-gaps as well as opening-trade mini-spikes or tumbles before settling down

Xiaomi Stock

Xiaomi is a major handset maker that entered the EV maker in 2024. Its sole EV, the SU7 sedan outsells the Tesla Model 3 in China. Xiaomi will release the YU7 crossover later this year, taking on the Model Y.

First-quarter earnings rose 64%. Revenue climbed 45% to $14.9 billion, the fifth straight quarter of accelerating growth.

Xiaomi's U.S. shares have regained their 50-day moving average, building cup-with-handle base with a 34.26 buy point.

XIACY stock has rallied 49.1% in 2025.

Hong Kong-listed Xiaomi trades over the counter in the U.S. Its U.S. shares often have mini-gaps.

Alibaba Stock

Alibaba is an e-commerce, cloud-computing and artificial intelligence giant.

Earnings for the December-ended fiscal Q3 rose 10% vs. a year earlier, up from a fractional gain in Q2 and a 6% drop in Q1. Revenue rose 5% to $38.4 billion, ending two quarters of modestly accelerating growth.

While the bulk of the business remains in e-commerce, cloud-computing growth has been faster. More recently, Alibaba's move in AI has fueled investor excitement. Alibaba will power the AI efforts of Apple (AAPL) iPhones in China.

Alibaba will release fiscal Q4 earnings on May 15, with analysts expecting a 24% EPS gain on an 8% revenue increase

Alibaba stock hit a multiyear high of 148.43 on March 17, then tumbled as Trump tariffs ramped up vs. China. BABA stock found support at the 200-day line and is currently just below the 50-day line. Alibaba has a 148.43 cup-base buy point on a daily chart, with 129.73 as an early entry just above the 50-day line. On a weekly chart, there's a wafer-thin handle with an official 129.73 buy point.

BABA stock has climbed 47.8% in 2025.

Tencent Stock

Tencent is a messaging and gaming giant. Its WeChat "everything" app is hugely popular in China.

Q4 earnings rose 29% vs. a year earlier while revenue climbed 8% to $23.6 billion, both slowing somewhat from the prior quarter. Q1 earnings are expected on May 14.

Tencent has a cup base that formed around the top of a prior consolidation. The official buy point is 70. Shares are just above the 50-day line.

TCEHY stock has climbed 17.9% so far in 2025.

Hong Kong-listed Tencent trades over the counter in the U.S. Its U.S. shares often have mini-gaps.

Qifu Technology Stock

Qifu Technology is a fintech providing credit to consumers and small businesses, teaming up with financial institutions.

Q4 earnings jumped 86% vs. a year earlier, the third straight quarter of accelerating growth. Revenue fell 3% to $614.1 million.

Q1 results will be released in a couple weeks.

Qifu stock has a new consolidation with a 48.94 buy point. On a weekly chart, there's a 44.28 handle entry.

QFIN stock is up 10.9% in 2025 as of May 9.

Please follow Ed Carson on X/Twitter at @IBD_ECarson and Threads at @edcarson1971 for stock market updates and more.

YOU MIGHT ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Catch The Next Big Winning Stock With MarketSurge

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

This article was first featured on IBD