Gaotu Techedu Inc. (GOTU) saw its stock price plunge by 14.04% in a 24-hour period, as Chinese ADRs and ETFs faced a significant selloff in pre-market trading. The sharp decline comes as tensions between the United States and China escalate, with both sides imposing new tariffs on each other's imports.

The broader market downturn has affected numerous Chinese companies listed on US exchanges. Notable declines include YINN falling 24%, XPeng and NetEase dropping 14%, while giants like Alibaba and JD.com saw their shares tumble by 11% and 10% respectively. This widespread selloff reflects growing investor concerns about the potential impact of a widening trade war on Chinese businesses and the global economy.

As Beijing retaliates against US tariffs with its own trade levies, fears of a deep recession are intensifying among investors. The focus now shifts to potential measures from the Chinese government to support domestic exporters and shore up the economy. With no signs of de-escalation from either side, market volatility is expected to persist, potentially putting further pressure on Chinese ADRs like Gaotu Techedu in the near term.