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China and the US have made progress in economic and trade talks, agreeing to suspend certain tariffs and export controls for one year, including the removal of "fentanyl tariffs" and reciprocal tariffs. Both sides also committed to anti-drug cooperation, agricultural trade expansion, and resolving corporate disputes. Experts emphasize the importance of China-US cooperation, particularly amid the 2025 APEC meeting where both nations play a critical role in advancing regional trade liberalization and multilateralism despite global headwinds. Meanwhile, the US Federal Reserve cut interest rates for the second consecutive month amid economic uncertainties, including a prolonged government shutdown which risks amplifying economic losses.

The 20th Central Committee of the Communist Party of China (CPC) convened its fourth plenary session in Beijing from Monday to Thursday. The session adopted a crucial document shaping China's development from 2026 to 2030, emphasizing the importance of this period in achieving socialist modernization by 2035. Key priorities include strengthening the real economy, advancing self-reliance in science and technology, fostering a high-quality socialist market economy, and accelerating rural and agricultural modernization. The plan also focuses on creating a robust domestic market, enhancing green transition, and ensuring public well-being.

Recent developments reveal how US tariff policies are increasingly hurting its own economy. Rising import costs and retaliatory measures have begun to squeeze profits, reduce exports, and push up inflation. More US employers are reducing headcount on weaker demand and heightened economic uncertainty, according to the Federal Reserve's most recent "Beige Book" publication. Meanwhile, the ongoing US government shutdown and stalled layoffs highlight a widening policy paralysis. Together, these shifts underscore a growing contradiction: measures meant to "protect" American industries are instead amplifying economic strain at home and shaking global market confidence. The IMF's latest outlook upgrades global growth to 3.2% but flags Washington's protectionist turn as a major source of uncertainty.

China has experienced a robust economic surge during the National Day holiday and Mid-Autumn Festival holiday, with tourism, retail, and film industries showing strong growth, reflecting resilient consumer demand. Meanwhile, China imposed export controls on rare earth-related items, emphasizing its commitment to global security and supply chain stability. Gold prices also hit a record high amid global economic uncertainty, driven by risk aversion and geopolitical tensions. As China concludes its 14th Five-Year Plan, it highlights achievements in economic opening-up, including reduced foreign investment restrictions and alignment with international trade rules, reinforcing its role in global economic integration. These developments underscore China's economic vitality and strategic positioning amid global challenges.

The US government has entered its third partial shutdown under President Donald Trump, with Democrats and Republicans deadlocked over funding concessions. The shutdown disrupts federal services, furloughs 800,000 workers, and strains low-income families, healthcare, and transportation. Meanwhile, US trade policies, including tariffs on China, have backfired, hurting American soybean and beef exporters as China shifts to Brazilian and Australian suppliers. In contrast, China is navigating a deliberate economic transition, curbing speculative real estate growth while redirecting investment toward high-tech sectors. Additionally, China is enhancing global competitiveness by introducing a new K visa to attract foreign tech talent, signaling strategic shifts in trade and immigration policies.

China has announced it will no longer seek new special and differential treatment (SDT) in WTO negotiations, signaling a commitment to multilateralism and trade reform while retaining its developing country status. The move, praised by WTO leadership, aims to foster a more equitable global trading system. Meanwhile, a WEF survey warns of subdued global growth due to trade disruptions, debt risks, and technological shifts, with emerging markets expected to drive expansion. Recently, AI-powered robo-advisory services are gaining traction among retail investors, though experts caution against overreliance on these tools for stock-picking. Together, these developments involving global trade, economic governance, and technologies are all shaping global markets.

The latest round of China-US talks this week put TikTok at the center of discussions, with both sides outlining a basic framework to resolve the issue through cooperation and reduced investment barriers. Domestically, official data released this week showed that the Chinese economy continued to expand in August despite external pressures. Industrial output in August grew 5.2 percent annually, driven by high-tech and equipment manufacturing. Retail sales rose 3.4 percent, underlining resilient domestic demand. To further unleash consumption potential, authorities also introduced a new package of measures aimed at boosting service spending. On the global stage, China's role in advanced manufacturing gained recognition as the World Economic Forum announced that 12 new industrial sites had joined its Global Lighthouse Network – six of them in China. Regionally, the 22nd China-ASEAN Expo opened this week in Nanning, highlighting deeper opportunities in emerging areas of cooperation.

China is advancing its economic transformation through service-driven growth, digital innovation, and industrial resilience. The 2025 China International Fair for Trade in Services (CIFTIS) highlighted global participation, with 85 countries and nearly 2,000 companies showcasing advancements in AI, healthcare, and smart logistics. China's services trade exceeded $1 trillion in 2024, supported by market-opening policies and international collaboration. Meanwhile, pilot reforms in 10 regions aim to optimize production factors like data and talent mobility. Manufacturing remains foundational, with green factories and 5G infrastructure expanding. Foreign trade grew 3.5% in early 2025, led by high-tech exports and Belt and Road partnerships, reinforcing China's role in reshaping global value chains.

This week's newsletter highlights shifts in global economic and political dynamics, emphasizing China's growing role in shaping a new international order amid rising unilateralism and trade protectionism. The first article underscores China's efforts to promote multilateral cooperation, free trade, and global governance reforms through initiatives like BRI, BRICS and SCO. The second article questions the US Federal Reserve's purported independence, examining its alignment with financial elites and the geopolitical implications of its policies. The third article focuses on the SCO as a model for inclusive, win-win cooperation, with China driving economic and security collaboration, while the fourth notes the ongoing Eastern Economic Forum as a platform for deepening Asia-Pacific ties. Together, these pieces illustrate a world transitioning toward multipolarity, with countries advocating equitable, multilateral frameworks.

China's A-share market reached a historic milestone, surpassing 100 trillion yuan ($13.9 trillion) in market capitalization, driven by gains in key indices and strong performances in sectors like AI and digital transformation. Foreign investors remain bullish, with QFIIs increasing holdings in sectors such as tech, biotech, and consumer goods, while institutions like Goldman Sachs and UBS highlight China’s growth potential, particularly in AI and undervalued stocks. Meanwhile, global attention turns to Fed Chair Jerome Powell’s final Jackson Hole speech amid tensions with President Trump over rate cuts and inflation concerns, as expanded US tariffs on steel and aluminum raise costs for American consumers, exacerbating inflationary pressures.

China and the US have extended their tariff hike suspension for 90 days. Meanwhile, oil prices dipped as the IEA revised supply forecasts upward ahead of a US-Russia meeting, with market stability hinging on geopolitical outcomes and inventory trends. These themes underscore interconnected challenges in trade and energy markets amid global uncertainty. Separately, China's emphasis on new quality productive forces offers a roadmap towards innovation-led sustainable growth for both emerging and developed economies, while its financing policy improvements aim to bolster tech innovation via a combination of government guidance and market mechanisms. Read about all this and more in our weekly Biz Digest!

US President Donald Trump’s aggressive trade policies, including steep tariffs on China, India, the EU and others, have sparked inflation fears, market volatility, and backlash from impacted trade partners. India has hardened its stance against Trump’s demands, alleging hypocrisy and defending its trade and geopolitical ties with Russia. Meanwhile, US businesses such as GM and Stellantis are reporting significant tariff-induced losses, with economists warning of prolonged economic strain and job cuts. Meanwhile, analysts and scholars have countered "overcapacity" claims made against China's investment-led growth model. They argue that industrial abundance benefits global affordability, with the shared theme across these developments being the disruptive impact of protectionist policies on global trade, supply chains, and economic stability.

The IMF has raised its 2025 global growth forecast to three percent, citing easing inflation and resilient demand, though structural weaknesses remain. The eurozone, meanwhile, posted marginal 0.1 percent growth in Q2, weighed down by ongoing US tariffs. In China, attention will soon shift to October's upcoming Fourth Plenary Session, where policymakers are expected to signal new directions for reform. Themes such as "de-involution" and AI-driven talent realignment are gaining traction as China seeks to rebalance its economy. Recent tax data has also shed light on significant fiscal strength from 2021 to 2025—with over 85 trillion yuan (about $11.8 trillion) in revenue and 3.6 trillion yuan in tax and fee cuts—offering a window into Beijing's long-term growth strategy.

The 25th China-EU Summit took place in Beijing this week as the two sides marked the 50th anniversary of diplomatic relations. Leaders pledged to deepen cooperation in trade, investment, and the broader economy, highlighting shared interests amid rising global uncertainties. Adding to the week’s key news, China announced that the Hainan Free Trade Port will officially launch island-wide independent customs operations on December 18 – a significant milestone in the country's pursuit in high-level opening-up. Meanwhile, the economic outlook across developing Asia has dimmed. Fresh reports from the Asian Development Bank and the International Monetary Fund have growth forecasts lowered for developing Asia, citing falling exports amid heightened US tariffs and continued global trade uncertainty.

China's mid-year economic report has once again sent a positive signal to the world. The economy expanded by 5.3 percent in the first half of the year, exceeding expectations and prompting several major international banks to increase their full-year growth forecasts. Meanwhile, an expo showcasing new technologies and products from advanced supply chains is in full swing in Beijing. The expo attracted Nvidia's CEO Jensen Huang, who announced that the US chip giant would resume shipments of its H20 AI chip to China. Huang also praised China's rapid advancement in AI. Also this week, the latest report from the US Fed showed that economic activity had picked up in recent weeks, although the outlook was 'neutral to slightly pessimistic'. Read all about this, as well as the latest developments in "stablecoins" and the achievements of China's 14th Five-Year Plan, in our weekly newsletter. 

The US has postponed its tariff pause till August 1, while simultaneously imposing additional tariffs on a number of nations, once again raising global economic unease. At the same time, a new 50% tariff on copper imports has been introduced, further unsettling supply chains and investor confidence. Meanwhile, China's economic expansion continues steadily, with its 2021-2025 growth projected to exceed 35 trillion yuan, driven by domestic innovation and industrial upgrades, an official said this week. This week, BRICS countries are also gathering to advance efforts on cross-border currency settlement, signaling stronger financial cooperation. While challenges remain, the initiative reflects a broader trend toward diversified global economic frameworks.

From Central Asia to Russia and South Asia, China is strengthening its regional partnerships to help shape a more balanced and interconnected world. The 2nd China-Central Asia Summit, held from June 16 to 18 in the Kazakh capital of Astana, produced a raft of consensuses on strengthening China-Central Asian cooperation, with key areas ranging from infrastructure and trade, to regional development. Meanwhile, the 28th St. Petersburg International Economic Forum, themed "Shared Values: The Foundation of Growth in a Multipolar World," emphasized on building an effective system of equal and mutually beneficial international cooperation – a sentiment echoed by many participants amid shifting geopolitical dynamics. Further south, the ongoing 9th China-South Asia Expo in Kunming, southwest China, showcasing emerging industries and green innovation, reflects a shared push for inclusive growth and stronger regional connectivity between China and South Asian countries.

China and the US held the first meeting of its new trade and economic consultation mechanism this week in London. The talks were candid and constructive, covering bilateral and global economic issues, according to China's Ministry of Commerce. Chinese officials urged the US to address trade disputes through dialogue and cooperation rather than confrontation. International observers view the meeting as a positive signal of re-engagement, amid growing calls for global trade cooperation. European Central Bank President Christine Lagarde, in an exclusive interview with CGTN, called out tariff threats as creating uncertainty for the global economy, which puts a hold on many investment and development projects and dampens global growth expectations.

In this era of profound global uncertainty, cooperation, and mutual benefit have become the indispensable foundation for sustainable economic development. As the world's two largest economies, China and the US maintain interconnected economic relations — their respective economic trajectories significantly influence worldwide economic dynamics. On June 5, Chinese President Xi Jinping took a phone call from US President Donald Trump. Xi said dialogue and cooperation is the only right choice, and the two sides need to make good use of the economic and trade consultation mechanism already in place and seek win-win results in the spirit of equality and respect for each other's concerns.  Meanwhile, China and the EU held discussions this week to strengthen economic and trade cooperation.   This raises a pivotal question for all nations: In pursuing economic growth, should countries retreat into isolation or actively foster diversified cooperation? The answer is unequivocal clear.

The US and China – the world's two largest economies – remain inextricably linked, as trade fuels growth for businesses and consumers alike. Recent Geneva talks triggered a US buying spree, straining shipping capacity and underscoring enduring demand. Yet, challenges persist. American firms face whiplash from unpredictable trade policies, while Chinese exporters pivot to new markets, adapting to tariff threats. Meanwhile, China is strengthening ties with the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC), advocating collaborative, equitable trade frameworks. Amid global protectionism, the lesson is clear: commerce persists despite political turbulence. The task ahead? Ensuring those vital pathways stay open.

From solid April data to legislative milestones in the private sector, China's economy is charting a course marked by both stability and transformation. China's value added industrial output rose 6.1% year-on-year in April, with retail sales and fixed-asset investment also posting steady gains, National Bureau of Statistics data showed. Analysts say the numbers reflect resilient domestic demand and strong policy support as key drivers of the recovery. Meanwhile, a landmark law aimed at bolstering China's private sector took effect on Tuesday, codifying principles of equality and fair competition in a bid to address long-standing concerns among entrepreneurs. On the global stage, the China-CEEC Expo opened this week in Ningbo, Zhejiang Province, showcasing cutting-edge technologies, AI innovations, and green solutions—underscoring China's expanding partnerships with Central and Eastern European countries. Together, these developments offer a snapshot of a steadily evolving economy.

China and the United States released a joint statement on Monday following their economic and trade meeting in Geneva. According to the statement, the two nations agreed to eliminate 91 percent of existing tariffs and suspend 24 percent worth of tariffs announced following April 2 for an initial 90-day period, leaving the remaining 10 percent in place. During the meeting, both sides also agreed to establish a mechanism for continued dialogue on their trade and economic relations. In parallel with the diplomatic outreach, China has also stepped up efforts to revitalize its domestic market. On May 15, China's National Development and Reform Commission held a symposium with private firms to gather opinions on current economic conditions. China is also implementing a 0.5 percentage point reduction in the reserve requirement ratio (RRR) for eligible financial institutions, injecting roughly 1 trillion yuan (about $139 billion) of long-term liquidity into the financial market.

China is stepping up efforts to empower its private sector, with a landmark law that aims to provide legal guarantees for private enterprise development and encourage deeper participation in major national projects. The law emphasizes equal treatment to public as well as private entities, with a strong focus on institutional support and innovation. Private enterprises remain a key pillar of China's economic growth, accounting for over half of the nation's total foreign trade volume in the first four months, as per official data released on Friday. China has also unveiled a broad financial stimulus package—featuring interest rate cuts and lowered bank reserve requirements—to boost liquidity, stabilize the market, and restore momentum in key sectors like real estate and exports. On the global front, meanwhile, China and Russia are deepening institutional cooperation, with their joint innovations seen as contributing to a more dynamic and multipolar global economy.

China's 2025 May Day holiday is experiencing a notable travel surge, with cross-regional trips reaching about 1.42 billion, a 4.5 percent year-on-year increase. This travel boom encompassed both domestic and international tourism, with inbound tourism growth partly due to China's expanded visa-free policies. Forecasts indicate China's global tourism revenue might exceed $500 billion annually by 2033. China passed its first national private sector promotion law this week, effective May 20, 2025. It aims to boost private businesses through fair market access, improved investment conditions, and legal rights protection. Globally, the US dollar faces challenges to its dominance due to fiscal indiscipline, political pressure on the Federal Reserve, and financial weaponization, threatening its long-term status as the world's primary reserve currency.

The Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting on Friday to analyze and study the current economic situation and economic work. It was noted that China has seen its economy improve this year. The foundation for China's sustained economic recovery needs to be further consolidated, and the country faces increasing impact from external shocks, the meeting said. The meeting urged preparing for worst-case scenarios with sufficient planning, and taking concrete steps to do a good job in economic work. The global economic landscape has been significantly disrupted by the US tariff policies. Apart from adversely impacting America's own economy, the tariffs have increased worldwide trade uncertainty. The International Monetary Fund (IMF) has slashed its global growth forecast for 2025, mainly because of the escalating trade tensions caused by US tariffs.

Chinese President Xi Jinping on Friday concluded his state visit to Vietnam, Malaysia and Cambodia this week. The visits with fruitful results have strengthened China's relations with the three countries and injected new momentum into building a community with a shared future among neighboring countries. Asia has driven global growth over the past decade, sustaining stability despite rising protectionism and geopolitical tensions. A key factor is China's win-win cooperation with regional economies, particularly ASEAN. This partnership fosters shared prosperity, contrasting sharply with zero-sum policies, and underscores Asia's resilience through constructive economic integration.

The US-China tariff dispute has intensified dramatically over the past week. The White House announced that cumulative US tariffs on Chinese goods have now reached 145%, while China retaliated this week by imposing 125% duties on US imports. "If the US insists on a tariff war, China will fight to the end," declared a Foreign Ministry spokesperson on Thursday, vowing to defend national interests and uphold the multilateral trading system.

As US tariffs shake global markets, investors are turning to Asia, drawn by currency gains, strong corporate earnings, and regional stability. While the US stock slump has led to speculation about trade policy uncertainties, analysts suggest that Asia's improving fundamentals and supportive policy measures could make it an increasingly attractive destination for global capital in the months ahead. The region's resilience and growing cooperation are set to make it a key investment hub.