Chinese equities tumbled on Monday as fears of a renewed trade war between Washington and Beijing weighed on investor sentiment and prompted profit-taking, pulling shares down from decade highs.

The CSI300 Index fell 1.8%, while the Shanghai Composite declined 1.3% by midday. In Hong Kong, the Hang Seng Index dropped 3.5%, with the Hang Seng Tech Index losing 4.5%.

Defying the broader selloff, China’s rare earth sector—central to the renewed trade tensions—soared over 4% to a record high during the morning session, and semiconductor stocks also posted gains.

The selloff followed U.S. President Donald Trump’s announcement on Friday of additional 100% tariffs on exports from China to the U.S., alongside new export controls on critical software effective November 1, in retaliation for China’s recent restrictions on rare earth exports.