On April 10th, the live broadcast studio of "Guanyuan Academy" of Guancha Observer Network invited authoritative experts to interpret Trump's global trade war. Ding Yifan, researcher of the World Development Research Institute of the Development Research Center of the State Council, said that due to China's artificial intelligence bursting the bubble of American technology stocks, Trump's tariff war may cause a snowball-like plunge in the US stock market.
Ding Yifan mentioned that the original bubble of American technology stocks was very large. With the advent of Chinese AI like Deepseek, NASDAQ technology stocks fell sharply. "Chinese companies have successively launched their own AI and open-sourced them. As a result, NASDAQ technology stocks have plummeted because investors believe they have the largest bubbles," he explained.
"Previously, these technology stocks were driven up by hype, claiming that a lot of money had to be invested to meet industry needs for developing AI," Ding Yifan continued. "Later, when Chinese companies developed AI as good as or even better than America's but at much lower cost, it immediately had a disruptive effect. People thought the stock market was unreliable, so the stocks of NASDAQ tech companies started falling first, then spreading to other company stocks. Everyone believed that the stock prices of big companies were overvalued, so the entire stock market began to fall."
Talking about the impact of Trump's tariff policy on the US stock market, Ding Yifan believed that American technology company stocks might fall further and become more dangerous. "If tariffs are added now, they will hit these companies. If the tariff war continues, their efficiency and profits will drop significantly, leading to problems with their stocks," he stated.
He pointed out that American investors refer to a company's profit situation and financial status when buying stocks. If a company's financial status is poor, costs increase dramatically, and profits decrease significantly, its stocks will be dumped by investors. "If the performance of these large companies falls significantly due to Trump's high tariffs, their stocks will be dumped in the next round," he explained.
"These large company stocks are known as blue-chip stocks. Once blue-chip stocks fall, the entire stock market will get out of control and tumble like an avalanche. So this is very dangerous, and all of this is directly related to the tariff war," Ding Yifan said.
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Original source: https://www.toutiao.com/article/7491960647530381862/
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