(Bloomberg) -- Chinese stocks in Hong Kong snapped a six-day winning streak, as renewed fears of an expanding US-China trade war weighed on sentiment.

The Hang Seng China Enterprises Index closed down 2.6% to be among Asia’s worst performers on Wednesday. The mainland benchmark CSI 300 Index ended up 0.3% after a late-afternoon surge erased earlier losses.

The moves came after the Trump administration imposed new restrictions on Nvidia Corp.’s chip exports to China, raising concerns about how the curbs may escalate trade tensions beyond import taxes. The fallout could weigh on chip-sector earnings and set back China’s ambitions to compete on the global artificial intelligence stage.

“The underperformance for HK stocks is driven by concerns of the US China trade war extending to non-tariff measures, such as increasing restrictions on US technology and possibly financial markets,” said Gary Tan, a portfolio manager at Allspring Global Investments. The Nvidia disclosure “is likely to lead to some near-term slowdown in China AI development,” he said.

The curbs on Nvidia are a sign the Trump administration will stay the course on the US government’s approach to Chinese tech development. DeepSeek’s emergence in January helped crystallize the threat posed by China’s rapid strides in artificial intelligence, considered a key long-term geopolitical battleground.

After outperforming global equities earlier this year following the emergence of DeepSeek, Chinese equities have faltered amid the tariff-induced turmoil. The Hang Seng China Enterprises Index has lost about 9% since Trump’s April 2 tariff announcement.

The Hong Kong gauge has also been dragged down by technology firms Meituan and JD.com Inc., as investor concerns grow over intensifying competition in the Chinese food and instant delivery sector. Shares of Xiaomi Corp. slumped as well after the Chinese electric carmaker excluded the YU7 model from its range of anticipated product displays for the upcoming Shanghai auto show.