American small and medium-size companies that rely on China are scrambling to adjust their business plans in response to the escalating trade war.Traderead more
Here are the products that stand to be the most affected by China's new tariffs on $75 billion worth of U.S. goods.Marketsread more
The summit comes amid fears over a global economic slowdown, and U.S. tensions over trade allies, Iran and Russia.Politicsread more
The world's second biggest economy is past a point where it cannot ignore its enormous debt anymore, according to an analyst.China Economyread more
As demand for lab monkeys continues to rise, U.S. scientists are reporting delays in research projects because they can't obtain enough animals, according to the National...Politicsread more
Trump does have some powerful tools that would not require approval from U.S. Congress.Politicsread more
The European Union will respond in kind if the U.S. imposes tariffs on France over digital tax plan, EU chief Donald Tusk told G-7.Technologyread more
Trump said he will raise tariffs on $250 billion in Chinese goods to 30% and hike duties on another $300 billion in products to 15%.Politicsread more
Carl Medlock used to work at Tesla. Now he's one of the few people in the U.S. that can fix the company's original Roadster electric vehicles.Technologyread more
China said on Saturday it strongly opposes Washington's decision to levy additional tariffs on $550 billion worth of Chinese goods and warned the United States of consequences...Politicsread more
Stocks dropped after Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China.US Marketsread more
Shares of China's Xiaomi slid 5 percent on Wednesday, closing below its initial public offering (IPO) price for the first time since its first day of trade and hitting a record low.
The smartphone maker closed at 16.30 Hong Kong dollars ($2.08), below the 17.00 Hong Kong dollar price its stock had when it went public. The last time it did this was on its first day of trade when shares closed at 16.80 Hong Kong dollars.
But Xiaomi's Wednesday closing price represents a more than 24 percent decline from its record high close of 21.55 Hong Kong dollars on July 18.
It's not clear if there was a single catalyst for the sell-off in Xiaomi shares, but it appears to be part of a broader downturn in Chinese and Hong Kong-listed stocks. Hong Kong's Hang Seng Index closed over 1.5 percent lower, with major stocks such as Tencent ending the day in negative territory.
The trade war between China and the U.S. has been weighing on Chinese stocks, particularly those of technology companies. Xiaomi, which still makes the majority of its money in China, has been looking to expand to new markets, particularly in the West. It also has its sights set on the U.S. but has not made much progress in that market.
There's still a lingering concern that Xiaomi, which makes around 70 percent of its revenues from smartphones, might be relying too much on hardware, particularly in an increasingly competitive market. Still, it has shown strong growth, becoming the largest smartphone vendor in India in the second quarter, according to market intelligence provider IDC, and seeing a nearly 50 percent growth in smartphone shipments globally during the same period against the backdrop of a declining market.
But the company has made a business of selling high-quality phones at low prices with often thin margins. Similar to Apple, the company does have its own services business with video and music streaming offerings, but this only accounts for just over 8 percent of total revenues.
"I believe there is some fair skepticism on Xiaomi's business model as investors are scratching their heads on how Xiaomi will continue to make money beyond hardware. There is some ambiguity around if there is enough scale and capability to make money from services either by advertising or by content? Ads have taken the bulk of this and (Xiaomi is) effectively competing with big players," Neil Shah, research director at Counterpoint Research, told CNBC by email Wednesday.
"Xiaomi has its work cut out to form a solid strategy to drive meaningful services revenues and at the same time make sure its user base is increasing and not shrinking."