China's Market Surge Under Pressure Amid Escalating U.S. Trade Tensions: 'Upcoming Weeks Will Be Much More Challenging'

U.S.-China Trade Tensions: Renewed trade tensions between the U.S. and China, particularly regarding rare earth export controls, threaten to undermine the recent rebound in China's stock market, which had seen significant gains due to expectations of government stimulus and foreign investment.

Market Vulnerability: Analysts warn that the stock market rally may be at risk of reversal, as geopolitical instability and aggressive positioning in equities could lead to a sideways market or further pullbacks, especially if tariff conflicts escalate again.