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Shuli Ren

Unicorns Are China’s Innovative Cavalry in Trade War

Beijing is choking off a lucrative pipeline of U.S. tech IPOs.

Ready, steady… don’t charge.

Ready, steady… don’t charge.

Photographer: iStock/Getty Images

A trade war can be fought on many fronts. As China breeds unicorns, they are being asked to stay at home rather than gallop overseas to enrich U.S. investors.

The U.S. pipeline of Chinese IPOs has been light since President Donald Trump started making noises about tariffs in early March. The only billion-dollar offering is the pending sale by e-commerce site Pinduoduo, for which an American listing makes sense because it competes directly with Alibaba Group Holding Ltd and Inc., which already trade there.