Trump's trade war is reducing the wealth of the super-rich in the US – and Chinese billionaires are getting richer

Business Insider Trump's trade war is reducing the wealth of the super-rich in the US – and Chinese billionaires are getting richer Theron Mohamed • 14 hours • 3 minutes read Zhang Yiming, the CEO of TikTok owner Bytedance, is worth $57 billion. The tech titans have lost billions this year. Meanwhile, their Chinese rivals have seen significant gains in their wealth in the wake of the trade war triggered by US President Donald Trump. The tariffs have reignited fears of inflation and recession in the US. This has prompted investors to dump highly valued tech stocks and instead invest in safer assets like gold and Warren Buffett's Berkshire Hathaway. The sell-off has hit the net worth of most of the richest Americans hard, as their stakes in tech companies make up the majority of their wealth. Trump has imposed some of the highest tariffs on imports from China. This put the world's second-largest economy under increased pressure. Nevertheless, Chinese tech stocks have risen sharply this year – in hopes of more friendly regulations and new government stimulus measures. This has boosted the wealth of China's tech elite. As of Friday's close, the 20 biggest gainers in the Bloomberg Billionaires Index have increased their combined wealth by $139 billion (approximately €122 billion) this year. That's more than the value of BlackRock. Meanwhile, the 20 biggest losers have lost $450 billion (approximately $397 billion). No Chinese among the top 20 losers It's notable that nine of the 20 biggest gainers are Chinese and only four are Americans, while 15 of the 20 biggest losers are Americans – and not a single one is Chinese. This trend could indicate how the companies' prospects have changed, at least from the perspective of global investors. And also how the US and China are likely to fare in the trade war. Chinese executives who have built wealth this year include Bytedance founder Zhang Yiming, Xiaomi CEO Lei Jun, and BYD founder Wang Chuanfu. Together, they have increased their wealth by $26 billion (€23 billion). Zhang alone has gained $13.6 billion (€12 billion), or 31 percent, for a total of $57 billion (€50 billion), placing him 24th on the rich list. Xiaomi CEO Lei Jun is worth $37 billion (€32.6 billion). The hardest-hit US executives are Tesla and SpaceX CEO Elon Musk, Oracle co-founder Larry Ellison, and Amazon founder Jeff Bezos. They collectively lost $193 billion (about €170 billion). Musk alone lost $121 billion (about €106 billion), or 28 percent. The Indigo Trail The richest Americans have lost far more than the Chinese elite have gained for several reasons. Their wealth is larger, so a 10 percent fluctuation in their net worth represents significantly more in absolute terms. US stocks are overall more highly valued than Chinese stocks, making them more vulnerable to sharper price declines. It's also worth noting that the Chinese government is playing a larger role in stabilizing its markets and supporting flagship domestic companies. This can help limit declines in Chinese stocks. Trouble for Tesla The wealth gains of Chinese billionaires also reflect the strong performance of their companies. For example, BYD's sales of electric and hybrid vehicles rose 40 percent last year to a record $107 billion (about €94 billion), surpassing Tesla's $98 billion (€86 billion) in revenue, as the Chinese electric car maker increasingly moved into foreign markets. Meanwhile, Tesla shares are under pressure not only because of Musk's proximity to Trump and his leading role in cutting government spending and jobs, but also because of concerns about tariffs and competition. Politics aside, Tesla "is grappling with an aging model lineup, recalls of its much-vaunted Cybertruck, and increasing competition—particularly from Chinese suppliers like BYD," wrote Danni Hewson of AJ Bell in a recent analysis. If Chinese executives climb the global wealth ladder while American titans slide, it could signal a fundamental shift in market sentiment and a shake-up of the global economic order.