Using the method of partial least squares path analysis (PLS), the study period from October 2016 to October 2017 and from November 2017 to July 2018 was used to build a simple path model and a composite path model of the impact of the China-US trade friction on China’s financial security. The results show that the compound path model of the research period is more reasonable, the direct negative impact of trade friction has a positive impact on China’s financial security, and the direct negative impact of trade friction can positively affect China’s financial security by positively affecting market sentiment. The direct negative impact of the trade friction on China’s economic fundamentals and thus on China’s financial security is not significant. It is suggested that China should retain stable interest rates, structural adjustment of leverage ratio of foreign trade enterprises, to foster institutional investors in the stock market, maintain high foreign exchange reserves, and continue to use countercyclical factors.