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China’s president wants the U.S. to oppose the democratic island’s independence.
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Opinion | Xi Gives Trump a Taiwan Test
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The Art of the Tariff Deal: U.S. Nears Trade Agreement With China
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President Donald Trump’s approach to trade negotiations landed the U.S. in a familiar place over the weekend.
Announced with fanfare back in April on “Liberation Day,” the sweeping tariffs were met with a market swoon and quickly delayed. Then, businesses began stockpiling inventories, and negotiations with key trading partners began. A few deals – or deal frameworks – were announced. Despite dire warnings from economists, the summer saw a lull in any meaningful inflation from the tariffs.
Then on Oct. 12, Trump mixed it up again, announcing a 100% tariff on China after the Asian nation said it was limiting exports of rare earth minerals that are key components in semiconductors and other high-tech manufacturing. Markets fell sharply on the news. But Trump assured he would be able to make a deal with Chinese President Xi Jinping, a leader he touts as “very strong.”
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On Monday, as he headed to Japan, Trump confirmed a deal with China was in the works, potentially settling a critical dispute between the world’s two largest economies. Officials said the two nations had come to an agreement in which the U.S. tariffs are halted and China postpones its export licensing plan for a year.
It was a familiar pattern for Trump. The threat of a sharp increase in tariffs is consistent with his style of striking first publicly, then letting negotiations go on behind the scenes as he waits for the opportunity to announce a deal that he asserts only he could have made.
Speaking on NBC’s “Meet the Press” Sunday, Treasury Secretary Scott Bessent said, “President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs, and I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”
Bessent also said the two nations had made progress on a deal to bring relief to U.S. farmers who have struggled under China’s boycott of American soybeans. China bought about half of the U.S. soybean production in 2024.
Averting more stringent tariffs will be good news for consumers, who are starting to see the effects of the levies moving into the economy and raising overall inflation – still the No. 1 concern for many Americans.
“Tariffs and the weaker dollar have likely added roughly 0.4 percentage points to headline inflation this year,” said Mark Vitner, chief economist at Piedmont Crescent Capital. “We expect the impact from tariffs to wane next year, while housing costs and prices for services outside of housing ease further.”
While Trump and Xi may come to a deal, things are not going so smoothly with another key trading partner: Canada.
The neighboring nation has yet to reach a tariff deal with the U.S. On Friday, after a Canadian province began airing an anti-tariff ad featuring former President Ronald Reagan, Trump said he would slap an additional 10% onto Canada’s tariff rate.
Ontario Premier Doug Ford had said he would pause the ad campaign but not until after the weekend and that it would continue during the World Series games between the Los Angeles Dodgers and the Toronto Blue Jays.
En route to Asia Saturday, Trump said he had no intention of meeting with Canadian Prime Minister Mark Carney while the latter is also in Asia for the global meetings.
Whether Trump’s unconventional trade policy will work with Canada as it appears to have with China remains to be seen.
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U.S., China agree to framework for trade deal ahead of Trump visit with Xi Jinping
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U.S., China agree to framework for trade deal ahead of Trump visit with Xi Jinping – CBS News
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Trump predicts China trade deal finalized in days as his Asia tour continues in Japan
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President Trump arrived Monday in Japan, where new Prime Minister Sanae Takaichi is banking on building a friendly personal relationship with the U.S. leader to ease trade tensions.
Mr. Trump’s Asian tour, which kicked off over the weekend, has a heavy focus on business ties, and speaking to journalists as he flew into the Japanese capital, he predicted that a U.S.-China trade agreement would be done before he returned to Washington.
But first, the meeting with Takaichi will be an early diplomatic test for Japan’s first woman leader. She took office only last week, and has a tenuous coalition backing her.
During the flight to Tokyo, he came back to the press cabin on Air Force One, along with Secretary of State Marco Rubio, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. He said he’d talk about the “great friendship” between the U.S. and Japan during his visit.
PHILIP FONG/AFP/Getty
“I hear phenomenal things” about Takaichi, Mr. Trump said, noting her closeness with former Prime Minister Shinzo Abe, with whom Mr. Trump had a good relationship during his first term.
“It’s going to be very good,” he said. “That really helps Japan and the United States.”
Mr. Trump’s only scheduled event on Monday following his arrival is a meeting at the Imperial Palace with Emperor Naruhito, Japan’s ceremonial head of state.
The American leader spent Sunday in Malaysia, participating in a regional summit of Southeast Asian nations where he struck preliminary trade agreements with Malaysia, Thailand, Cambodia and Vietnam.
Trump says he expects trade deal with China done this week
Mr. Trump told reporters on Air Force One that he expected to reach a trade agreement with China in the coming days.
Officials from the world’s two largest economies said Sunday that they’d reached an initial consensus for Mr. Trump and Chinese leader Xi Jinping to try to finalize during a high-stakes meeting later in the week.
“I have a lot of respect for President Xi,” Mr. Trump told reporters on Air Force One. “I think we’re going to come away with a deal,” Mr. Trump said.
Qilai Shen/Bloomberg
Bessent also said Sunday on “Face the Nation with Margaret Brennan” that a TikTok deal announced last month was set to be finalized Thursday during the Trump-Xi meeting.
After his visit to Japan, Mr. Trump is set to end his Asian tour in South Korea, where he’s expected to meet with Xi on the sidelines of a Pacific Rim summit of the Asia-Pacific Economic Cooperation forum (APEC).
Trump renews openness to meeting North Korea’s Kim Jong Un
Mr. Trump also said he would be willing to extend his trip to Asia if there was a chance to talk with reclusive North Korean leader Kim Jong Un Kim. Since South Korea is the president’s last stop before returning to the U.S., “it’s pretty easy to do,” he told reporters on Air Force One.
Mr. Trump’s overtures to reconnect with Kim have gone unanswered.
“If he wants to meet, I’ll be in South Korea,” Mr. Trump said.
Trump downplays notion of becoming U.S. vice president
On other matters, Mr. Trump rejected the possibility of running for vice president as a way to get back to the presidency, saying, “I’d be allowed to do it” but wouldn’t because “it’s too cute.”
Steve Bannon, a Trump ally, has repeatedly said the president could serve a third term despite a constitutional prohibition. Mr. Trump himself has flirted with the idea.
On Air Force One, Mr. Trump said, “I haven’t really thought about it.”
He praised Rubio and Vance as potential future Republican candidates. “I’m not sure if anybody would run against those two. I think if they ever formed a group, it would be unstoppable,” he said.
South China Sea, Taiwan, and tariffs
There’s no shortage of security issues in the region, including access to the South China Sea and the future of Taiwan. But Mr. Trump’s focus has undoubtedly been trade and his desire to realign the international economy in his vision of “America first.”
For the most part, that means tariffs, or at least the threat of them. Mr. Trump has frequently used taxes on imports — from allies and adversaries alike — in an effort to boost domestic manufacturing or seek more favorable terms.
However, his unilateral power to enact tariffs remains contested. The president is awaiting a Supreme Court decision in a case that could solidify his authority or limit it.
The president flew to Tokyo from Kuala Lumpur, Malaysia, where he attended the annual summit of the Association of Southeast Asian Nations. He participated in a ceremonial signing of an expanded ceasefire between Thailand and Cambodia, which fought earlier this year. Trump helped pressure both countries to stop by threatening to withhold trade agreements.
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Two U.S. Navy Aircraft From Same Carrier Crash Into South China Sea
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KUALA LUMPUR, Malaysia—A U.S. military helicopter and a jet fighter from the same aircraft carrier crashed into the South China Sea within 30 minutes of each other on Sunday.
The two aircraft’s five crew members were rescued and are in stable condition, the U.S. Pacific Fleet said on X. Both aircraft had taken off from the USS Nimitz, America’s oldest aircraft carrier that is returning to its home base on the U.S. West Coast for decommissioning scheduled for next year.
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Gabriele Steinhauser
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3 Chinese nationals arrested in Georgia for trying to buy $400K worth of black-market uranium
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Authorities in the country of Georgia say they have disrupted a major nuclear smuggling attempt involving several Chinese nationals accused of trying to buy uranium on the black market, according to the Associated Press (AP).
The State Security Service of Georgia (SSSG) announced Saturday that three Chinese citizens were detained in Tbilisi while attempting to illegally purchase roughly 4.4 pounds of uranium for $400,000, according to the outlet.
Officials said the suspects were planning to traffic the nuclear material to China via Russia, the outlet reported.
“Three Chinese citizens have been detained in Tbilisi while attempting to illegally purchase 2 kilograms of nuclear material — uranium,” the agency said, according to the AP.
UN NUCLEAR CHIEF SAYS IRAN HAS MATERIAL TO BUILD BOMBS, BUT NO PLAN TO DO SO
Officials arrest multiple Chinese nationals in Georgia over uranium trafficking plot. (State Security Service of Georgia)
Video footage released by the agency shows security officers in the Georgian capital seizing bottles containing what was identified as uranium and arresting multiple individuals at the scene.
IAEA CHIEF CALLS ISRAELI PRESIDENT, REPORTEDLY SAYS IRAN NUCLEAR FACILITY WAS SEVERELY DAMAGED
Two bottles identified as uranium were confiscated over the weekend in Georgia’s Tbilisi. (State Security Service of Georgia)
According to the SSSG, one of the suspects had overstayed his visa and was living in Georgia illegally, the AP said. He allegedly led efforts to locate and acquire the radioactive substance, even bringing in experts from abroad to assist, the outlet added. Other members of the group reportedly coordinated the operation from China.
The perpetrators were identified and detained while “negotiating the details of the illegal transaction,” the security service reportedly said.
The agency did not specify when the arrests occurred or provide the identities of the suspects.
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Georgian officials escort a suspect after authorities foiled a uranium smuggling plot in Tbilisi. (State Security Service of Georgia)
The latest arrests follow a similar case in July, when Georgian authorities detained a foreign national and a Georgian citizen accused of planning to sell uranium worth $3 million. Officials said that material could have been used to construct explosive devices or carry out terrorist attacks.
The Associated Press contributed to this report.
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China Industrial Profits Keep Up Strong Growth
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China’s industrial profits rose sharply in September, extending momentum from a stronger-than-expected increase in August.
Industrial profits rose 21.6% from a year earlier in September, following a 20.4% rise in August that ended a three-month run of declines, data from the National Bureau of Statistics showed on Monday.
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Optimism for U.S.-China trade deal as Trump kicks off Asia trip
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Ahead of a high stakes meeting between President Trump and Chinese President Xi Jinping, both sides are signaling optimism for reaching a new trade agreement. Weijia Jiang reports.
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China will make ‘substantial’ purchases of U.S. soybeans and should avoid an extra 100% tariff, says Bessent—who reveals he’s also a farmer | Fortune
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Treasury Secretary Scott Bessent signaled on Sunday that the U.S. and China will significantly de-escalate their trade war under a framework he negotiated.
In an interview on CBS News’ Face the Nation with Margaret Brennan, Bessent said an additional 100% tariff that President Donald Trump threatened earlier this month is “effectively off the table,” along with China’s rare earth restrictions.
“So I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime,” he said.
Trump and Chinese President Xi Jinping are scheduled to meet Thursday on the sidelines of a regional economic conference in South Korea, where they will determine the final details of a deal.
Bessent said Trump’s 100% tariff threat, which would have boosted the overall rate above 150%, created significant leverage during the talks in Malaysia with Vice Premier He Lifeng over the weekend.
The two sides also discussed American agricultural exports to China and Beijing’s role in helping curb the fentanyl trade.
Farmers have been warning of an economic crisis in rural America as crop prices fall and costs remain high, while China has held off on buying any U.S. soybeans this harvest season, despite traditionally being their top export market.
In a separate appearance on ABC’s This Week, Bessent revealed that he is also a soybean farmer: “So, I have felt this pain, too.”
On CBS, Bessent declined to give specific details but said soybean farmers will be “extremely happy with this deal for this year and for the coming years.”
He added that a recent Chinese purchase of soybeans from Argentina had been planned before the U.S. extended a currency lifeline to Buenos Aires but was timed to take advantage of a drop in export duties.
“Those soybeans were always going to be on the market. It’s a global market. The three leading suppliers are Brazil, Argentina and the U.S.,” Bessent said. “And I believe that we have brought the market back into equilibrium, and I believe that the Chinese will be making substantial purchases again.”
While he indicated China will ease its export controls on rare earths, Bessent suggested U.S. restrictions will remain.
When asked about limits on chip exports and curbs on Chinese investments in the U.S., he replied, “There have been no changes in our export controls.”
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Jason Ma
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U.S., China Reach Rare Earths, Tariff Pause for Trump and Xi to Consider
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Top Chinese and U.S. economic officials on Sunday hashed out the framework of a trade deal for U.S. President Donald Trump and Chinese President Xi Jinping to finalize that would pause steeper American tariffs and Chinese rare earths export controls and resume U.S. soybean sales to China, U.S. officials said.
U.S. Treasury Secretary Scott Bessent said the talks on the sidelines of the ASEAN Summit in Kuala Lumpur had eliminated the threat of Trump’s 100 percent tariffs on Chinese imports starting November 1. Bessent said he expects China to delay implementation of its rare earth minerals and magnets licensing regime by a year while the policy is reconsidered.
Chinese officials were more circumspect about the talks and offered no details about the outcome of the meetings.
Trump and Xi are due to meet on Thursday on the sidelines of the Asia Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea to sign off on the terms. While the White House has officially announced the highly anticipated Trump-Xi talks, China has yet to confirm that the two leaders will meet.
“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters after he and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and top trade negotiator Li Chenggang for a fifth round of in-person discussions since May.
Bessent said he anticipates that a tariff truce with China will be extended beyond its November 10 expiration date, and that China will revive substantial purchases of U.S. soybeans after buying none in September in favour of soybeans from Brazil and Argentina.
U.S. soybean farmers “will feel very good about what’s going on both for this season and the coming seasons for several years” once the deal’s terms are announced, Bessent told the ABC program “This Week.”
Greer told the “Fox News Sunday” program that both sides agreed to pause some punitive actions and found “a path forward where we can have more access to rare earths from China, we can try to balance out our trade deficit with sales from the United States.”
Chinese caution
China’s Li Chenggang said the two sides reached a “preliminary consensus” and will next go through their respective internal approval processes.
“The U.S. position has been tough,” Li said. “We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns.”
Trump arrived in Malaysia on Sunday for a summit of the Association of Southeast Asian Nations, his first stop in a five-day Asia tour that is expected to culminate in a face-to-face with Xi in South Korea on Thursday.
After the talks, Trump struck a positive tone, saying: “I think we’re going to have a deal with China.”
Trump threatened new 100 percent tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China’s expanded export controls on rare earth magnets and minerals.
China and the United States rolled back most of their triple-digit tariffs on each other’s goods under a trade truce due to expire on November 10.
The U.S. and Chinese officials said that in addition to rare earths, they discussed trade expansion, the U.S. fentanyl crisis, U.S. port entrance fees and the transfer of TikTok to U.S. ownership control.
Bessent told NBC’s “Meet the Press” program that the two sides have to iron out details of the TikTok deal, allowing Trump and Xi to “consummate the transaction” in South Korea.
Talking points
On the sidelines of the ASEAN Summit, Trump hinted at possible meetings with Xi in China and the United States.
“We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the U.S., in either Washington or at Mar-a-Lago,” Trump said.
Among Trump’s talking points with Xi are Chinese purchases of U.S. soybeans, concerns around democratically governed Taiwan which China views as its own territory, and the release of jailed Hong Kong media tycoon Jimmy Lai.
The detention of the founder of the now-defunct pro-democracy newspaper Apple Daily has become the most high-profile example of China’s crackdown on rights in Hong Kong.
Trump also said that he will seek China’s help in U.S. dealings with Moscow, as Russia’s war in Ukraine grinds on.
Fragile truce
Tensions between the world’s two largest economies flared in the past few weeks as a delicate trade truce, reached after a first round of trade talks in Geneva in May and extended in August, failed to prevent the United States and China from hitting each other with more sanctions, export curbs and threats of stronger retaliatory measures.
China’s expanded controls of rare earths exports have caused a global shortage. That has prompted the United States to consider a block on software-powered exports to China, from laptops to jet engines, according to a Reuters report.
Reporting by Xinghui Kok; Writing by Mei Mei Chu, Yukun Zhang and John Mair; Editing by Tom Hogue, Will Dunham and Ros Russell
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Reuters
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Stellerus uses satellites to visualise 3D wind data for weather forecasts, insurance risks
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Hong Kong University of Science and Technology (HKUST) start-up Stellerus Technology aims to be the world’s first provider of satellite-enabled three-dimensional wind data to help wind power, transport and insurance firms boost revenues, cut costs and manage risks, according to its founders.
Stellerus, founded in 2023 by the university’s academics, would leverage China’s cost competitiveness in satellite manufacturing to make global 3D wind data collection economically viable, said Su Hui, the chairwoman and co-founder.
3D wind data – wind direction and speed and their changes with altitude – is crucial for improving weather forecasting, especially severe climate events.
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“After I came to Hong Kong, I realised the technology for implementing such a project in mainland China was quite developed and the cost would be much lower than overseas,” Su said. “In the US, such a satellite could cost US$100 million to build, compared with 20 million yuan [US$2.8 million] in China.”
Su Hui, the chairwoman and co-founder of Stellerus Technology. Photo: Edmond So alt=Su Hui, the chairwoman and co-founder of Stellerus Technology. Photo: Edmond So>
Su, a hydraulic expert, joined the HKUST’s department of civil and environmental engineering in 2022 as chair professor. She was formerly a principal scientist and weather programme manager at the Jet Propulsion Laboratory at Nasa.
By deploying advanced optical sensors, Stellerus could collect data and use artificial intelligence to analyse carbon dioxide, methane and water vapour in the atmosphere to calculate changes in wind direction and speed, she said.
“Such detailed data is lacking for meteorological observation and analysis globally,” she said. “Various organisations, including Nasa, plan to embark on such a project, but none has been implemented so far due to the high cost of launching a satellite constellation.”
Nasa was testing laser technology for developing space-based 3D wind measurements, according to its website. It was also collaborating with the US National Oceanic and Atmospheric Administration to develop advanced remote weather sensing instruments that can be flown aboard satellites to collect highly precise data to improve weather forecasting globally.
In August 2023, HKUST partnered with Chang Guang Satellite Technology – a Jilin government-backed firm and China’s first commercial remote sensing satellite company – to become Hong Kong’s first higher education institution to launch an Earth environmental satellite.
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China’s next 5-year plan puts focus on tech and consumers
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China’s leaders are vowing to reduce its reliance on foreign advanced technology and spur stronger domestic demand as it weathers “high winds” amid elevated trade tensions with the U.S.An outline of the ruling Communist Party’s blueprint for the next five years was laid out in a 5,000-word communique released Thursday after a four-day top level meeting in Beijing, just days ahead of planned talks between Chinese leader Xi Jinping and U.S. President Donald Trump.Video above: Here’s why Trump is threatening a 100% tariff on ChinaFive-year plans are a throwback to the days of Soviet-style central planning. China still relies heavily on them to map out policy priorities and decide on funding. Party “plenum” meetings like the one held this week also are used to rally the party rank-and-file around Xi’s leadership.Thursday’s announcement signaled no major policy shifts. Despite mounting trade tensions, China intends to remain a global manufacturing power while building stronger economic growth at home.China gains confidence in the trade warThe communique does not refer directly to the trade war between Beijing and Washington, but warns of rising “uncertainties and unforeseen factors.”Han Wenxiu, a senior party official in financial and economic policy, told reporters Friday that China is well placed to handle such risks in an era when great-power competition is becoming more complex and “the international balance of power is undergoing profound adjustments.”He predicted China’s strength and international status would grow in the next five years. “There is always opportunity in crisis and crisis can be turned into opportunity,” Han said.Chi Lo, an Asia Pacific senior market strategist at BNP Paribas Asset Management, said an emphasis in the communique on substantial improvements in scientific and technological self-reliance likely reflects confidence that China is less vulnerable to pressure from the trade war.Video below: Trump delays tariffs on China but consumers still face 30% import taxThe party vowed to achieve “markedly stronger” international influence by 2035 and to safeguard the multilateral trading system, portraying Beijing as a defender of free trade, noted Leah Fahy, a China economist at Capital Economics.Domestic economic challenges remainA downturn in the property sector that began while China was still in the midst of disruptions from the COVID-19 pandemic has sapped consumer confidence, reducing household wealth and leading to widespread layoffs.China’s communique emphasized the strategic need to expand domestic demand. The government has already encouraged investment to modernize factories and paid subsidies to people who replace old appliances and vehicles with new ones.“The economies of major countries are all driven by domestic demand and the market is the most scarce resource in today’s world,” said Zheng Shanjie, head of the National Development and Reform Commission, Beijing’s main planning agency.But manufacturing capacity exceeds demand in many industries. That has caused damaging price wars and led companies to boost exports, adding to trade tensions with the U.S., the European Union and others.Even with strong government support, the economy grew 4.8% in the last quarter, the slowest pace in a year. Factory activity shrank for the sixth consecutive month in September, as domestic demand remained sluggish.China’s leaders have stuck to their goal of attaining the status of a “mid-level developed country” and doubling the size of the economy in 2020 by 2035.That implies an average annual growth rate of about 4-5% in the next decade, said Lynn Song, chief economist for Greater China at ING Bank.China will remain a manufacturing juggernautChina is the world’s biggest manufacturer, accounting for roughly 30% of global production and about a quarter of its overall economy. The new 5-year plan calls for keeping manufacturing at an “appropriate level” with advanced industries as the backbone.China’s focus on the manufacturing sector “will remain a top priority, even in the face of overcapacity (and) price wars,” said Fahy of Capital Economics.Over the years, Chinese manufacturing has progressed from labor-intensive, low-cost production to higher-value products including electric vehicles, robots and batteries. In coming years, the emphasis will be on advanced manufacturing, said Robin Xing, chief China economist at Morgan Stanley.That includes areas such as quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, artificial intelligence and next-generation mobile communications, said Zheng, the planning agency chief.“These industries are ready to take off,” he said. “It means that in the next 10 years we will build another high-tech industry in China and this will inject continued impetus to our efforts to achieve Chinese modernization.”It’s unclear if China’s commitment to catalyzing more consumer spending and domestic investment will make much of a dent in its exports.Chinese companies like BYD and CATL have become global leaders in EV battery technology and production. China plays a pivotal role in global supply chains and has shown it can control access to rare earths, materials used in many products.“The Chinese government sees manufacturing as a core issue in security and geopolitical leverage over other countries,” added Gary Ng, a senior economist at Natixis.Xi continues to centralize powerThe four-day plenum was marked by relatively low attendance.Out of 205 full members in the elite Communist Party central committee, only 168 were there, according to the communique. Many have been purged in anti-corruption campaigns that also enforce loyalty to Xi within the party.An “unprecedented proportion of central committee members are in political trouble,” said Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis.The meeting appointed Gen. Zhang Shengmin as China’s second highest ranking general. He replaced He Weidong, who was ousted from the party along with eight other senior officials in a recent anti-corruption drive.As the party continues to centralize power, “the political position faced by Xi and his dominance within the party is still relatively secure” said Xin Sun, a senior lecturer in Chinese and East Asian business at King’s College London.Wu reported from Bangkok and Moritsugu reported from Beijing. Associated Press researchers Yu Bing and Shihuan Chen in Beijing contributed.
, —China’s leaders are vowing to reduce its reliance on foreign advanced technology and spur stronger domestic demand as it weathers “high winds” amid elevated trade tensions with the U.S.
An outline of the ruling Communist Party’s blueprint for the next five years was laid out in a 5,000-word communique released Thursday after a four-day top level meeting in Beijing, just days ahead of planned talks between Chinese leader Xi Jinping and U.S. President Donald Trump.
Video above: Here’s why Trump is threatening a 100% tariff on China
Five-year plans are a throwback to the days of Soviet-style central planning. China still relies heavily on them to map out policy priorities and decide on funding. Party “plenum” meetings like the one held this week also are used to rally the party rank-and-file around Xi’s leadership.
Thursday’s announcement signaled no major policy shifts. Despite mounting trade tensions, China intends to remain a global manufacturing power while building stronger economic growth at home.
China gains confidence in the trade war
The communique does not refer directly to the trade war between Beijing and Washington, but warns of rising “uncertainties and unforeseen factors.”
Han Wenxiu, a senior party official in financial and economic policy, told reporters Friday that China is well placed to handle such risks in an era when great-power competition is becoming more complex and “the international balance of power is undergoing profound adjustments.”
He predicted China’s strength and international status would grow in the next five years. “There is always opportunity in crisis and crisis can be turned into opportunity,” Han said.
Chi Lo, an Asia Pacific senior market strategist at BNP Paribas Asset Management, said an emphasis in the communique on substantial improvements in scientific and technological self-reliance likely reflects confidence that China is less vulnerable to pressure from the trade war.
Video below: Trump delays tariffs on China but consumers still face 30% import tax
The party vowed to achieve “markedly stronger” international influence by 2035 and to safeguard the multilateral trading system, portraying Beijing as a defender of free trade, noted Leah Fahy, a China economist at Capital Economics.
Domestic economic challenges remain
A downturn in the property sector that began while China was still in the midst of disruptions from the COVID-19 pandemic has sapped consumer confidence, reducing household wealth and leading to widespread layoffs.
China’s communique emphasized the strategic need to expand domestic demand. The government has already encouraged investment to modernize factories and paid subsidies to people who replace old appliances and vehicles with new ones.
“The economies of major countries are all driven by domestic demand and the market is the most scarce resource in today’s world,” said Zheng Shanjie, head of the National Development and Reform Commission, Beijing’s main planning agency.
But manufacturing capacity exceeds demand in many industries. That has caused damaging price wars and led companies to boost exports, adding to trade tensions with the U.S., the European Union and others.
Even with strong government support, the economy grew 4.8% in the last quarter, the slowest pace in a year. Factory activity shrank for the sixth consecutive month in September, as domestic demand remained sluggish.
China’s leaders have stuck to their goal of attaining the status of a “mid-level developed country” and doubling the size of the economy in 2020 by 2035.
That implies an average annual growth rate of about 4-5% in the next decade, said Lynn Song, chief economist for Greater China at ING Bank.
China will remain a manufacturing juggernaut
China is the world’s biggest manufacturer, accounting for roughly 30% of global production and about a quarter of its overall economy. The new 5-year plan calls for keeping manufacturing at an “appropriate level” with advanced industries as the backbone.
China’s focus on the manufacturing sector “will remain a top priority, even in the face of overcapacity (and) price wars,” said Fahy of Capital Economics.
Over the years, Chinese manufacturing has progressed from labor-intensive, low-cost production to higher-value products including electric vehicles, robots and batteries. In coming years, the emphasis will be on advanced manufacturing, said Robin Xing, chief China economist at Morgan Stanley.
That includes areas such as quantum technology, biomanufacturing, hydrogen and nuclear fusion energy, artificial intelligence and next-generation mobile communications, said Zheng, the planning agency chief.
“These industries are ready to take off,” he said. “It means that in the next 10 years we will build another high-tech industry in China and this will inject continued impetus to our efforts to achieve Chinese modernization.”
It’s unclear if China’s commitment to catalyzing more consumer spending and domestic investment will make much of a dent in its exports.
Chinese companies like BYD and CATL have become global leaders in EV battery technology and production. China plays a pivotal role in global supply chains and has shown it can control access to rare earths, materials used in many products.
“The Chinese government sees manufacturing as a core issue in security and geopolitical leverage over other countries,” added Gary Ng, a senior economist at Natixis.
Xi continues to centralize power
The four-day plenum was marked by relatively low attendance.
Out of 205 full members in the elite Communist Party central committee, only 168 were there, according to the communique. Many have been purged in anti-corruption campaigns that also enforce loyalty to Xi within the party.
An “unprecedented proportion of central committee members are in political trouble,” said Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis.
The meeting appointed Gen. Zhang Shengmin as China’s second highest ranking general. He replaced He Weidong, who was ousted from the party along with eight other senior officials in a recent anti-corruption drive.
As the party continues to centralize power, “the political position faced by Xi and his dominance within the party is still relatively secure” said Xin Sun, a senior lecturer in Chinese and East Asian business at King’s College London.
Wu reported from Bangkok and Moritsugu reported from Beijing. Associated Press researchers Yu Bing and Shihuan Chen in Beijing contributed.
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Trump announces new punishing tariffs on Canada
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President Trump is on his way to Asia for a three-country trip. On Saturday, he also announced new, punishing tariffs on Canada. Willie James Inman has the details.
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As Trump and Xi Get Set to Talk Trade, Asia Worries About Impact on Its Security
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President Trump put the world on notice in his first term that the U.S. was preparing for an era of intensified military and economic competition with Beijing.
But as he left for his first trip to Asia since returning to the White House, striking a new trade deal with Chinese leader Xi Jinping has moved to the top of Trump’s agenda, spurring apprehensions among allies that the dealmaking might come at their expense.
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Trump travels to Asia to meet with China’s Xi Jinping as the U.S. government shutdown in the U.S. drags on
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President Donald Trump headed for Asia for the first time this term, a trip on which where he’s expected to work on investment deals and peace efforts before meeting face-to-face with Chinese President Xi Jinping to try to de-escalate a trade war.
“We have a lot to talk about with President Xi, and he has a lot to talk about with us,” Mr. Trump told reporters Friday night as he left the White House. “I think we’ll have a good meeting.”
The president will have a long-haul flight that has him arriving in Malaysia on Sunday morning, the first stop of a three-country visit.
Aboard Air Force One on Saturday, Mr. Trump told reporters he may be discussing its purchases of Russian oil with Xi. He said China is substantially cutting back on its future purchases after the U.S. imposed sanctions on Moscow’s two biggest oil companies. Chinese national oil companies will at least in the short-term refrain from buying Russian oil, Reuters reported last week.
When asked when he hopes to accomplish from the meeting with China, the president said, “I think a complete deal.”
“I want our farmers to be taken care of, and he wants things also. We’re going to be talking about fentanyl,” Mr. Trump said Saturday. “I think we have a really good chance of making a very comprehensive deal.”
Mr. Trump met with the emir and prime minister of Qatar Saturday aboard Air Force One during a refueling stop in that country. The Emir of Qatar, Tamim bin Hamad Al Thani, said that as soon as he heard the president was coming to Qatar, he wanted to have a conversation.
Mr. Trump thanked the emir and Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani for bringing “peace to the Middle East,” after they served as intermediaries during the Israel-Hamas peace deal, calling them a “great ally.”
His trip comes as the U.S. government shutdown drags on. Many federal workers are set to miss their first full paycheck this week, there are flight disruptions as already-squeezed air traffic controllers work without pay, and states are confronting the possibility that federal food aid could dry up. As Republicans reject Democratic demands demands to extend health care tax credits, there’s no sign of a break in the impasse. But Mr.Trump himself appears to be maintaining business as usual approach, including by embarking on this latest foreign trip.
“America is shut down and the President is skipping town,” Senate Democratic leader Chuck Schumer of New York said.
Mr. Trump’s first stop is at a regional summit in Kuala Lumpur. Trump attended the annual Association of Southeast Asian Nations summit only once during his first term, but this year it comes as Malaysia and the U.S. have been working to address a skirmish between Thailand and Cambodia.
On Sunday, he’s scheduled to have a meeting with Malaysian Prime Minister Anwar Ibrahim, followed by a joint signing ceremony with the prime ministers of Thailand and Cambodia.
Mr. Trump threatened earlier this year to withhold trade deals with the countries if they didn’t stop fighting, and his administration has since been working with Malaysia to nail down an expanded ceasefire.
From there, Mr. Trump heads to Japan and South Korea, where he’s expected to make progress on talks for at least $900 billion in investments for U.S. factories and other projects that those countries committed to in return for easing Trump’s planned tariff rates down to 15% from 25%.
The trip to Tokyo comes a week after Japan elected its first female prime minister, Sanae Takaichi. Trump is set to meet with Takaichi, who is a protégé of former Prime Minister Shinzo Abe. Mr. Trump was close to Abe, who was assassinated after leaving office.
Mr. Trump said Takaichi’s relationship with Abe was “a good sign” and “I look forward to meeting her.”
While there, Mr. Trump is expected to be hosted by Japanese Emperor Naruhito, and meet with U.S. troops who are stationed in Japan, according to a senior U.S. official who was not authorized to speak publicly and spoke to reporters on condition of anonymity about the planned trip.
In South Korea, Mr. Trump is expected to hold a highly anticipated meeting with China’s Xi on the sidelines of the Asia Pacific Economic Cooperation summit.
While the APEC summit is set to be held in Gyeongju, the Trump-Xi meeting is expected to take place in the city of Busan, according to the U.S. official.
The meeting follows months of volatile moves in a trade war between China and the U.S. that have rattled the global economy.
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