Nio and Xpeng saw deliveries of their electric cars drop in August due to the global semiconductor shortage while rival Li Auto managed to eke out growth.
Mutual reduction in trade tariffs would improve the U.S.-China relationship, said Frank Lavin, a former undersecretary of Commerce for international trade.
China's health-care sector will probably be the next to fall under scrutiny, analysts warn, as the country's regulators crack down on everything from tech to education this year.
Chinese regulators announced that minors would only be allowed to play online games for three hours a week, a dramatic tightening of previous regulations.
One beaten-down U.S.-listed Chinese education stock can recover by 55% as tutoring companies shake off the regulatory crackdown, Morgan Stanley analysts said.