Trump's trade war is eroding US billionaires' fortunes — while China's are getting even richer

• The US tech elite are down sharply in wealth this year while their Chinese rivals are up strongly.
• Elon Musk's net worth has tanked by $121 billion, while Bytedance's CEO is up nearly $14 billion.
• Their contrasting fortunes are one result of the global trade turmoil sparked by President Donald Trump.

America's tech titans have lost billions this year while their Chinese rivals have racked up large wealth gains amid President Donald Trump's tariff-induced trade war.

The tariffs have reignited fears of inflation and recession in the US, spurring investors to dump high-flying tech stocks in favor of safer holdings such as gold and Warren Buffett's Berkshire Hathaway.

The sell-off has hammered the net worths of most of the richest Americans, whose stakes in tech companies make up the vast majority of their wealth.

Trump has aimed some of the highest duties at imports from China, putting the world's second-largest economy under more pressure. Nevertheless, Chinese tech stocks have rallied strongly this year at the prospect of friendlier regulation and fresh government stimulus, boosting the fortunes of China's tech elite.

As of Friday's close, the 20 biggest gainers on the Bloomberg Billionaires Index have grown their combined wealth by $139 billion this year — more than BlackRock is worth.

Meanwhile, the 20 largest wealth losers have seen $450 billion vaporized, a figure greater than Exxon Mobil's market value.

It's striking that nine of the top 20 gainers are Chinese and only four are American, while 15 of the 20 biggest losers are American and none are Chinese. That trend may speak to how their companies' outlooks have changed, at least in the eyes of the global investment community, and how the US and China are expected to fare in the trade war.

The Chinese executives racking up wealth this year include Bytedance founder Zhang Yiming, Xiaomi CEO Lei Jun, and BYD founder Wang Chuanfu. They've jointly added a combined $26 billion, with Zhang gaining $13.6 billion, or 31%, to $57 billion — putting him in 24th place on the rich list.

The US bosses hit hardest are Tesla and SpaceX CEO Elon Musk, Oracle cofounder Larry Ellison, and Amazon founder Jeff Bezos. They've lost a collective $193 billion, with Musk shedding $121 billion or 28%.

The richest Americans have lost far more than the Chinese elite have gained for a few reasons. Their fortunes are larger, so a 10% swing in their net worth is a bigger move in dollar terms. US stocks as a whole are more richly valued than Chinese equities, making them more vulnerable to steeper declines.

It's also worth underscoring the greater role of the Chinese government in shoring up its markets and supporting domestic champions, which can help to limit declines in Chinese stocks.

Trouble for Tesla

Chinese billionaires' wealth gains also reflect their companies' strong progress. For example, BYD's sales of electric and hybrid vehicles surged by 40% to a record $107 billion last year, surpassing Tesla's revenues of $98 billion, as the Chinese EV maker made inroads into foreign markets.

Meanwhile, Tesla stock is under pressure not only because of Musk's proximity to Trump and leading role in cutting government spending and workers, but also because of concerns about tariffs and competition.

Politics aside, Tesla has "struggled with an ageing line up, recalls of its much-vaunted Cybertruck and increased competition, especially from Chinese players like BYD," said Danni Hewson of AJ Bell in a recent note.

If Chinese executives scale the global wealth ladder while American titans slide down the rungs, it could signal a sea change in market sentiment — and an upheaval of the global economic order.