Chinese and Hong Kong shares fell sharply after reports emerged that the U.S. may impose up to 500 percent tariffs on China over rare earth limits and Russian oil, risking global trade turmoil.
As trade tensions mount, China said the United States had deliberately provoked unnecessary misunderstanding and panic over the rare earths' restrictions.
China's Shanghai Composite index slumped 1.95 percent to 3,839.76 while Hong Kong's Hang Seng index plummeted 2.48 percent to 25,247.10.
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