Chinese ADRs rallied in premarket trading as China hit back Trump's tariffs and China's "two sessions" began. YINN rose 3%; Bilibili rose 4%; NetEase, Baidu, and JD.com rose 3%; Trip.com and NIO rose 2%; PDD Holdings rose 1%; Alibaba rose 0.3%.

China on Tuesday swiftly retaliated against fresh U.S. tariffs, announcing 10%-15% hikes to import levies covering a range of American agricultural and food products, moving the world's top two economies a step closer toward an all-out trade war.

Beijing also placed twenty five U.S. firms under export and investment restrictions on national security grounds, but refrained from punishing any household names, as it did when it retaliated against the Trump administration's February 4 tariffs.

Ten of these 25 U.S. firms were targeted by China for selling arms to Taiwan, which China claims as its own territory.

China's latest retaliatory tariffs came as the extra 10% duty U.S. President Donald Trump threatened China with last week entered into force at 0501 GMT on March 4, resulting in a cumulative 20% tariff in response to what the White House considers Chinese inaction over drug flows.

China has accused the U.S. of fentanyl blackmail and it has some of the toughest anti-drug policies in the world.

Meanwhile, Thousands of delegates gathered in the capital this week for the country's biggest political event of the year, known as the "Two Sessions."

The "Two Sessions" event, which consists of two parallel sets of meetings, will start with an opening meeting of the Chinese People's Political Consultative Conference, a top advisory body, at 3 p.m. local time (2 a.m. ET) at the Great Hall of the People in Beijing.

At the opening plenary, the CPPCC members, made up of party delegates and representatives from the arts, business and legal sectors, will review and approve the agenda for the upcoming meeting and listen to a work report from the committee's chairman Wang Huning, a top advisor to Chinese President Xi Jinping.

The meeting of its top legislature, the National People's Congress, is scheduled to open on Wednesday.

As part of the NPC meeting, investors will closely monitor a government work report, delivered by Chinese Premier Li Qiang on Wednesday, where policymakers are expected to set the country's economic growth target at "around 5%," while raising fiscal budget targets to 4% of gross domestic product from 3% last year.

The leaders are also expected to revise down its annual consumer price inflation target to around 2%, the lowest level in more than two decades.