- These Chinese companies want to raise $100 million in US IPOs
- One company already has 7.2 million paying customers
- The trade war continues with reciprocal tariffs
Several Chinese companies are considering IPOs in the US despite major market instability brought on by US-China tensions, which have resulted in an aggressive trade war fuelled by tariffs.
The South China Morning Post revealed how a handful of Chinese startups are currently exploring options to expand to the US, however no decisions have been made and they could back out at any time.
Among the companies considering options overseas is Walnut Coding, which could seek to raise around $100 million.
These Chinese companies are seeking IPOs in the US
Founded in 2017, Walnut Coding describes itself as a “leader in coding education in China,” covering the likes of Scratch, Python and C++. In February 2024, it had 7.2 million paying customers.
Computing infrastructure provider Shenzhen Cloudsky Technologies as well as Zaihui and Zhonghe Group, which are known for their software services, could also be looking to raise $100 million, according to unnamed people familiar with the matter.
However, the companies’ explorations may grind to a halt depending on how the trade war plays out. Treasury Secretary Scott Bessent said that the delisting of some Chinese companies is currently “on the table” (via Bloomberg).
A Walnut Coding spokesperson has already declined to comment, highlighting how precarious the ongoing discussions are.
More broadly, the US has imposed triple-figure tariffs on some Chinese goods, but China has fought back by promising to take countermeasures to any “party reaching a deal at the expense of China’s interests.” Trump says more than 70 nations have reached out to start negotiations already.
In relation specifically to the US, China hit back with a 125% tax on products from the US, promising to “fight to the end” in a battle that could go on for longer than previously anticipated.
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