RLX Technology (RLX) saw its shares plummet 7.73% in pre-market trading on Monday, as Chinese ADRs and ETFs faced a significant selloff amid escalating trade tensions between the United States and China. The decline in RLX stock is part of a broader market reaction to Beijing's retaliatory tariffs on U.S. imports, which has intensified fears of a widening trade war and potential global recession.

The trade dispute has sent shockwaves through Chinese stocks listed in the U.S., with many experiencing double-digit percentage drops. Notable declines include YINN, down 24%; XPeng and NetEase, both falling 14%; while tech giants Alibaba and e-commerce platform PDD Holdings tumbled 11% and 10% respectively. The widespread selloff reflects growing investor concerns about the impact of trade tensions on Chinese companies' earnings and the overall Chinese economy.

As the world's two largest economies continue their tit-for-tat tariff impositions, with China now facing U.S. tariffs of over 50%, market participants are closely watching for potential support measures from Beijing to shore up Chinese exporters and the domestic economy. The ongoing trade dispute threatens to disrupt global trade flows and could potentially lead to a slowdown in global demand, further exacerbating concerns about China's already stuttering economic growth.