China Weekly Update: Key Economic and Diplomatic Events You Need to Know

China’s landscape last week was shaped by a mix of economic signals, global negotiations, and regional movements. From slowing factory output to renewed trade steps with the United States, and from fresh climate commitments to expanding partnerships across Asia, each event reflects how China is navigating a fast-changing global environment. This roundup brings together the most important developments with clear, complete information so readers can understand not just what happened, but how these stories define China’s present moment.

China’s Factory Output and Retail Sales Slow Down

• China’s latest economic data shows that both factory activity and consumer spending have slowed to their weakest levels in over a year.

• Industrial output in October rose by 4.9% compared with the previous year, while retail sales grew only 2.9%. Fixed-asset investment across the first ten months of the year dropped 1.7%, marking the sharpest decline since national records began.

• The property market continues to drag on growth. New-home prices across major cities recorded year-on-year declines, signalling persistent stress in the real estate sector and weak buyer confidence.

China and the U.S. Move Forward With New Trade Adjustments

• China and the United States took another step toward stabilizing trade relations following a recent meeting between their leaders.

• China announced the removal of tariffs on several U.S. farm products, including wheat, corn, chicken, cotton, beef, pork, fruit, and vegetables. These reductions take effect immediately.

• China also suspended new export controls on rare-earth materials and dual-use metals for one year. On the American side, the U.S. extended certain tariff exemptions and port-related fee waivers for Chinese shipping.

• This marks one of the most meaningful trade recalibrations between the two countries in recent years.

China Calls for a Fairer Business Environment in the European Union

• China urged the European Union to offer a more predictable and open business climate for Chinese companies operating across Europe.

• The statement followed a report showing that Chinese firms have reported declining confidence in the EU market for six straight years.

• Concerns raised include regulatory unpredictability, stricter industry reviews, and market-access barriers that affect technology, automotive, and energy-related Chinese investments.

China Strengthens Ties With Thailand During High-Level Visit

• A state visit by Thailand’s King Maha Vajiralongkorn to Beijing underscored a deepening partnership between China and Thailand.

• The meeting included discussions on economic cooperation, infrastructure connectivity, regional security, and investment. Beijing positioned the visit as part of its broader effort to strengthen relationships in Southeast Asia during a period of rising geopolitical pressure from Western nations.

• The visit also reflects Thailand’s growing alignment with China in trade, tourism, and technology exchanges.

China Pushes for Removal of Green-Tech Trade Barriers at Global Climate Talks

• At a major international climate gathering last week, China emphasized the need for developed countries to remove trade barriers that restrict the flow of green technologies.

• China renewed its commitment to raising the share of non-fossil energy sources to over 30% of national energy consumption by 2035. Officials also reaffirmed plans for a 7–10% reduction in greenhouse gas emissions from peak levels by the same year.

• The country positioned itself as a key partner for developing nations seeking technology, funding, and industrial support for clean-energy projects.

China Expands Its Geoeconomic Strategy to Influence Global Systems

• A widely discussed analysis this week noted how China is increasingly using investment, diplomacy, and industrial power to expand its global influence.

• Key areas include dominance in rare-earth production, leadership roles in regional organizations, and active participation in international trade reforms. China is also moving away from its long-held “developing nation” status in trade negotiations, giving it more authority in shaping new global rules.

• This strategy reflects Beijing’s long-term goal of reshaping global economic flows, supply chains, and influence networks.

China’s Export Performance Shows Continued Weakness

• China’s export sector continued to soften, with outbound shipments falling 1.1% year-on-year in October.
  Shipments to the United States dropped sharply by around 25%, while exports to Europe and Southeast Asia showed mixed performance. This slowdown follows a period when Chinese exporters rushed orders to avoid new tariffs earlier in the year.

• The weakening momentum highlights the combined pressures of global demand changes, trade tensions, and shifting supply chain dependencies.

China Resumes Limited Purchases of U.S. Wheat and Sorghum

• After months of reduced trade activity, Chinese buyers made new purchases of U.S. wheat and sorghum.

• These are the most notable agricultural purchases since earlier trade tensions disrupted normal buying patterns. However, soybean buying remains limited due to high domestic inventories and weak processing margins inside China.

• This cautious resumption signals a selective reopening of agricultural trade without a full return to previous levels.

China–Japan Tensions Rise Over Maritime Activity

• Regional tension increased when a formation of China’s coast guard vessels sailed through waters surrounding the Senkaku (Diaoyu) Islands.

• Japan lodged a formal protest, while China framed the move as a “rights-protection patrol.” The incident followed comments from Japan linking a potential conflict in Taiwan to Japan’s national security interests.

• The episode highlights how fragile regional stability remains in the East China Sea.

China to step up policy support for private investment in the energy sector

• China’s government announced a set of new policy measures aimed at boosting private-sector participation in the energy and infrastructure sectors. Officials from the national energy regulator and the development & reform commission said private firms will now be permitted to hold over 10% equity—and up to around 20% in some major nuclear power projects. This also expands to hydropower and cross-regional power-transmission projects.

• Projects normally dominated by state-owned enterprises (SOEs)—such as oil and gas pipelines, LNG import/storage facilities, and water-supply systems—will see feasibility assessments explicitly geared toward private capital entry. The push comes amid weakness in private-sector fixed-asset investment (which shrank 3.1% in the first nine months of 2025) while state investment rose 1%.

• The government will also ease financing access (credit support), create “green channels” for stock listings, and promote M&A of tech-driven firms to bolster the private ecosystem.

China’s Premier projects economy will exceed 170 trillion yuan by 2030

• During the opening of the China International Import Expo in Shanghai, China’s Premier announced that the Chinese economy is projected to surpass 170 trillion yuan (about $23.9 trillion) by 2030. He criticised global tariffs as undermining trade rules and emphasized China’s openness to imports of higher-quality products.

• He also noted that despite trade tensions, especially with the U.S., China expects its trade surplus to surpass last year’s record of $1 trillion as export growth to Europe, Southeast Asia, and Africa continues to compensate for falling U.S. sales.

Chinese foreign ministry outlines key upcoming diplomatic engagements

• At a regular press briefing, China’s foreign ministry spokesperson announced that Premier Li Qiang will attend the 24th meeting of heads of government of the Shanghai Cooperation Organization (SCO) in Moscow in mid-November, an official visit to the Republic of Zambia later in November, and participation in the 20th G20 Summit in Johannesburg shortly thereafter.

• The ministry emphasised that these engagements will further solidify regional economic cooperation, deepen cultural ties with partner states in Africa and Central Asia, and reflect China’s commitment to multilateralism amid global change.

China emphasises clean-technology trade at COP-type meeting

• At a global climate forum position, China’s Vice-Premier urged developed countries to remove trade barriers that impede flows of green technologies. He reaffirmed China’s target to boost non-fossil-energy share above 30% by 2035 and to reduce economy-wide greenhouse-gas emissions by 7-10% from peak levels. A survey cited during the event suggested that 71% of experts now believe China might peak emissions earlier than 2030, perhaps around 2028. China’s message emphasised that clean-tech investment, trade access, and global collaboration must advance more swiftly.

The week showed China balancing domestic challenges with an active international posture. Slower economic momentum, new trade adjustments, diplomatic outreach, and evolving regional security dynamics all contributed to a complex but revealing picture. As China continues to shape global supply chains, climate action, and diplomatic relationships, its weekly developments offer important clues about the direction of both its internal priorities and its role in the world.

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