New Oriental Education & Technology Group (NYSE: EDU) saw its shares plummet 7.26% in pre-market trading on Monday, caught in a broader selloff of Chinese ADRs and ETFs. The decline comes as trade tensions between the United States and China escalate, sparking fears of a widening trade war and potential economic recession.

The selloff in Chinese stocks is widespread, with other major players also experiencing significant drops. YINN, a leveraged ETF tracking Chinese stocks, fell a staggering 24% in pre-market trading. Tech giants like Alibaba and JD.com weren't spared, tumbling 11% and 10% respectively. Even electric vehicle makers such as XPeng and Li Auto saw their stocks plunge by 14% and 11%.

The market turmoil follows China's retaliatory measures against U.S. tariffs, with Beijing imposing its own trade levies on U.S. imports. This tit-for-tat escalation has raised concerns about disrupted trade flows and a potential slowdown in global demand, particularly impacting Chinese companies. As the situation unfolds, investors will be closely watching for any signs of de-escalation or support measures from the Chinese government to shore up its domestic economy and support exporters.