In a high-stakes move with global ripple effects, China announced on October 9, 2025, a new round of export controls on rare earth technologies and materials. The tightened restrictions explicitly target defense and semiconductor sectors, barring the export of processing technology without government approval. (Reuters)
The Ministry of Commerce clarified that Chinese firms are now prohibited from engaging in overseas cooperation on rare earth projects without prior authorization. The rules also extend to assembly, maintenance, upgrading, and repair of production lines. (Reuters)
Analysts view this as Beijing’s strategic effort to clamp down on sensitive supply chains and prevent its minerals from fueling foreign military or advanced computing programs. China already dominates global rare earth production, making the move a potent lever in its trade diplomacy. (BSS)
Golden Week Consumption Boosts China’s Economic Resilience
While export constraints signal geopolitical caution, internally China is showcasing resilience. The 2025 “super Golden Week” holiday merging National Day and Mid-Autumn festivities proved a strong show of consumer vitality and cultural momentum. (english.www.gov.cn)
Across major cities, tourism surged. Beijing hosted 25 million visitors during the holiday and recorded inbound tourism revenue of 31.65 billion yuan — a year-on-year increase of 4.7 %. (english.www.gov.cn) The capital alone saw 119,000 overseas arrivals, up nearly 48 % compared to last year. (english.www.gov.cn)
China’s visa-free and transit exemption policies also played a role. Citizens of 76 countries now enjoy easier access, while transit stays without visas have been extended to individuals from 55 nations. (english.www.gov.cn)
Retailers saw a clear upshift in demand for premium, smart, and experiential products. For example, smart home appliances alone accounted for 55 % of Suning’s holiday sales. (english.www.gov.cn) Pop-culture themed pop-ups and immersive cultural experiences also helped create new spending scenes. (english.www.gov.cn)
On the infrastructure front, key construction and industrial projects continued throughout the holiday period, illustrating the government’s push to maintain growth momentum. (english.www.gov.cn)
Xi Jinping Leverages Diplomacy and Pressure on Taiwan
On the diplomatic front, China is combining multilateral positioning with military intimidation toward Taiwan. A recent commentary emphasizes that Beijing is leveraging legal claims vis-à-vis UN Resolution 2758, asserting that any challenge to its hold on Taiwan undermines both Chinese sovereignty and the authority of the United Nations. (Asia Times)
Under President Xi Jinping’s leadership, China has intensified naval and air operations around the Taiwan Strait, deployed simulated missile strikes on foreign naval vessels, and engaged in large-scale joint exercises. (Asia Times) The goal appears twofold: to deter independence movements in Taiwan and to shape international perceptions ahead of potential conflict. (Asia Times)
Observers remain split: some view these drills as rehearsals for invasion, while others consider them calibrated signaling. Either way, China is placing Taiwan at the heart of its foreign policy posture going into 2026. (Asia Times)
China Backs Italy’s Proposal for Global Ceasefire Ahead of 2026 Olympics
In an interesting diplomatic development, China publicly supported Italy’s proposal for a UN-backed global ceasefire ahead of the 2026 Milano-Cortina Winter Olympics. Chinese Foreign Minister Wang Yi met with Italian counterparts in Rome, stating that China is keen to engage as a constructive force in maintaining peace and stability. (Reuters)
Though the Chinese official statement sidestepped explicit endorsement of the ceasefire plan, it emphasized the importance of a fair, non-discriminatory international order and mutual investment incentives. (Reuters) This signals a balancing act by Beijing — showcasing diplomatic leadership without binding itself to contentious proposals.
Typhoon Matmo Wreaks Havoc in Southern China
Meanwhile, nature’s fury has added a somber dimension to China’s current challenges. Typhoon Matmo battered southern China, especially Guangdong and Hainan provinces, forcing the evacuation of nearly 347,000 people. (AP News)
The storm, packing winds up to 151 kph (94 mph), triggered red alerts, heavy rain, and widespread flood risk. Transport services, flights, and ferry operations were suspended. (The Guardian) As Matmo pushes inland toward Yunnan and northern Vietnam, authorities are on guard against landslides and severe weather. (The Guardian)
Outlook & Implications
Today’s key developments in China reflect a complex interplay of geopolitics, economic adjustment, and domestic governance. The rare earth export restrictions further tighten Beijing’s grip on strategic leverage, especially in its ongoing rivalry with the U.S. over semiconductors and supply chains. Meanwhile, solid consumer spending and tourism performance during Golden Week fortify the narrative of China’s economic resilience.
Yet, rising pressure on Taiwan and assertive posturing in the international arena point to a more confrontational China ahead. Diplomatic gestures—like backing a global ceasefire—may help soften Beijing’s image abroad, but the underlying trajectory suggests a more confident, more aggressive China in 2026 and beyond.