The market sell-off may have cooled, but tensions are still heating up between the United States and China.
According to Treasury Secretary Scott Bessent, President Trump is still expected to meet with President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) on October 31. But given the barbs the two leaders have exchanged so far, it's just as possible that this feud stretches well into the fourth quarter.
And if that happens, I want you to be ahead of the crowd—not trying to catch up to it.
That's precisely why I'm going to share the top four sectors (and specific stocks) that will benefit the most if this trade war continues.
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Technology & Semiconductors
If the U.S. tightens the screws on tech exports, you better believe that China's going to lean harder on its own giants.
Chinese tech firms, such as Alibaba Group Holding Limited (NYSE:BABA) and Baidu Inc. (NASDAQ:BIDU), are likely to be the go-to names here. They've already got the platforms, the users, and the scale—so if U.S. tech pulls back, these are the names that'll step in and take the lead.
Consumer Discretionary
When trade wars flare up, consumer loyalty shifts fast, especially at home. If Chinese shoppers start ditching U.S. brands in favor of local ones, JD.com Inc. (NASDAQ:JD) and PDD Holdings Inc. (NASDAQ:PDD) could be among the first to benefit. They're already major players, and with historically strong patterns through December, this quarter could be their next big breakout.
Communication Services
Entertainment platforms could also get a boost. If U.S.-based services face pressure, homegrown names like Tencent Music Entertainment Group (NYSE:TME) stand to gain. It's already one of the most downloaded music apps in China, so when you add in a forced pivot away from U.S. apps and services, the upside potential becomes too large to ignore.
Defensive Diversification
If you're looking for broader exposure without picking individual names, the KraneShares CSI China Internet ETF (NYSE:KWEB) gives you the full basket. It's packed with domestic tech plays that don't rely on U.S. trade. When things get bumpy, that kind of focus tends to outperform.
All these names have one thing in common: they're built to benefit from a fractured trade environment.
So, whether it's local demand, low U.S. exposure, or repeatable Q4 setups—these are the kinds of trades that cut through the noise. While the rest of the market's waiting on headlines, we're already tracking the patterns.
Editorial content from our expert contributors is intended to be information for the general public and not individualized investment advice. Editors/contributors are presenting their individual opinions and strategies, which are neither expressly nor impliedly approved or endorsed by Benzinga.
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