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LTN: China’s Exports Unexpectedly Contracted in October

Major Taiwanese news network Liberty Times Network (LTN) recently reported that, China’s General Administration of Customs just released its October data. Statistics showed that, in U.S. dollar terms, China’s exports unexpectedly contracted by 1.1 percent in October, a sharp drop from the 8.3 percent year-over-year increase in September and also lower than the expected growth of three percent. Among them, exports to the United States fell by 25 percent year-over-year in October, a sharper decline from the 23 percent year-over-year decrease in September, marking the seventh consecutive month of double-digit decline.

Due to the decline in the momentum of companies making advance purchases to avoid tariffs, China’s exports unexpectedly contracted in October. Excluding the data distortion in February due to the Chinese New Year holiday, this is the first contraction since March 2024.

The Customs data also shows that China’s imports rose one percent year-over-year in October, lower than the expected 3.2 percent and a sharp drop from the 7.4 percent jump in September. China’s prolonged housing market slump and weak job market continue to impact consumer demand.

Despite a decline in exports to the United States, China’s overall exports grew by 5.3 percent year-over-year in the first 10 months of this year, with exports to ASEAN, the European Union, and Africa increasing by 14.3 percent, 7.5 percent, and 26.1 percent year-over-year, respectively.

Source: LTN, November 7, 2025
https://ec.ltn.com.tw/article/breakingnews/5222958

Briefings | | |   Economy/Resources Geo-Strategic Trend

CNA: China has Three Other Industries to Leverage as Choke Points Beyond Rare Earths

Primary Taiwanese news agency Central News Agency (CNA) recently reported that, although the U.S. and China just reached a truce agreement on tariffs and rare earth controls, Beijing has more leverage than just rare earths. It also holds absolute advantages in lithium batteries, mature process chips, and pharmaceutical raw materials.

In the lithium-ion battery field, the world’s top two battery manufacturers are both Chinese companies: CATL and BYD. Even if the batteries are produced in other regions, the core materials are still highly dependent on China. According to data provided by Benchmark Mineral Intelligence, Chinese suppliers produce 79 percent of the world’s battery cathode materials and 92 percent of the battery anode materials, and control 63 percent of the refined lithium, 80 percent of the refined cobalt, and 98 percent of the refined graphite supply.

In the field of mature process chips, China currently accounts for about one-third of global mature chip production capacity. Although these chips are less difficult to produce than advanced chips, they are crucial for sectors such as automobiles, consumer electronics, and defense. Furthermore, China controls key minerals such as gallium and germanium needed to manufacture chips and optoelectronic products. In 2024, China accounted for 99 percent of global gallium production and was also the world’s largest producer of germanium.

The third important industry is pharmaceuticals. China plays a dominant role in the supply of active pharmaceutical ingredients and their precursor chemicals. For example, most of the acetaminophen and ibuprofen imported into the U.S. come from China, and China is also a major producer of antibiotic raw materials. The U.S. generic drug supply is heavily reliant on India, and a large portion of the active ingredients in Indian generic drugs come from China.

Source: CNA, November 6, 2025
https://www.cna.com.tw/news/acn/202511060374.aspx

Briefings | | |   US-China Relations

African Nations Convert Dollar Debt to Yuan as China Advances Currency Internationalization

Several African countries have begun converting their dollar-denominated debt into Chinese yuan, a shift that both eases financial pressure on heavily indebted nations and helps China expand the global reach of its currency. According to Les Échos, Ethiopia and Kenya have already taken steps toward yuan-based restructuring, with others preparing to follow.

Kenya finalized the conversion of three Chinese loans—worth roughly $3.5 billion—last month. The loans originally funded a modern railway linking the port of Mombasa to a station near Naivasha in Rift Valley Province. Ethiopia is now negotiating with Beijing to convert at least part of its $5.38 billion in Chinese debt into yuan-denominated loans. Zambia’s finance minister says the government is closely watching Kenya’s deal, while Sri Lanka has also signaled interest.

The savings are significant. Yuan loans generally carry preferential interest rates of around 3 percent, compared with more than 7 percent for dollar borrowing. Kenya’s finance minister John Mbadi estimates that switching to yuan-based loans will save the country about $215 million annually.

For China, the conversions strengthen the yuan’s role in African sovereign debt markets, advancing Beijing’s long-term goal of currency internationalization. Economist Julien Marcilly notes this also reflects a broader reevaluation of the U.S. dollar’s safe-haven status, pointing to Panama and Colombia recently issuing debt in Swiss francs.

Dollar borrowing has become increasingly costly: the U.S. currency has fallen roughly 10 percent since early this year under the Trump administration, while U.S. interest rates have climbed from 1 percent in early 2021 to around 4.15 percent today.

Despite a slowdown in new lending, China remains the world’s largest bilateral creditor. Between 2008 and 2024, its development and export-import banks committed more than $472 billion. Across Asia, the Gulf, and Africa, governments are now seeking to reduce reliance on the dollar, diversify reserves, and shield themselves from Washington’s sanctions and policy swings—while China moves to expand its influence through the rise of the yuan.

Source: Radio France International, November 7, 2025
https://rfi.my/CAG2

Briefings | | |   Geo-Strategic Trend

Chinese Universities Adopt High School-Style Pressure, Stifling Student Independence

Hong Kong media outlets report a growing trend on Chinese university campuses, where life increasingly resembles the high-pressure environment of secondary school rather than higher education. Students describe mandatory morning exercises, evening study halls, intensive test-prep drills, and even parent–teacher conferences— routines they believed were behind them after surviving the grueling gaokao college entrance exam.

According to an analysis in Hong Kong’s Sing Tao Daily, the mounting pressures stem largely from China’s difficult job market, pushing more students to pursue graduate studies. Those hoping for direct admission to master’s programs—reserved for top undergraduates—are caught in an endless cycle of grades, rankings, and competition. Many say university feels like a “fourth year of high school,” with some claiming it is even more demanding than before.

The consequences can be devastating. Last month, a sophomore at Tongren University in Guizhou jumped into a campus lake and died by suicide. His note repeatedly cited the overwhelming pressure of compulsory study sessions. On social media, students lament that dreams of independence and exploration have been replaced by utilitarian course choices designed only to maximize GPAs, scholarship eligibility, and graduate admissions. Even dorm life has changed, as roommates see each other less as friends and more as academic rivals.

Universities have introduced increasingly strict controls—requiring attendance verification, banning electronic devices in class, and establishing parent WeChat groups to track students’ progress. Critics argue this approach contradicts the very purpose of higher education, which should foster innovation, critical thinking, and social responsibility rather than serve as an extended test-preparation program. The article concludes that an atmosphere of suffocating competition and control is stifling autonomy and preventing students from developing into independent, well-rounded adults.

Source: Central News Agency (Taiwan), November 6, 2025
https://www.cna.com.tw/news/acn/202511060091.aspx

Briefings | | |   Economy/Resources

Mental Health Crisis Grips China’s Youth Amid Academic Pressure and Phone Addiction

China is facing a deepening mental health crisis among children and adolescents, with tens of millions suffering from psychological disorders, according to Courrier International. Recent studies have repeatedly sounded the alarm over worsening mental well-being among minors. In response, the Ministry of Education has urged schools to ease academic workloads, while soaring smartphone use among young people has become another major concern.

According to the Chinese science website Guoke, one in four Chinese teenagers engages in self-harm — a trend that has grown markedly in recent years. Teachers and parents are increasingly forced to confront non-suicidal self-injury among students. On October 24, the Ministry of Education announced ten nationwide measures to bolster mental-health support, including reducing academic pressure, strictly limiting homework loads, banning repetitive or punitive assignments, encouraging weekly homework-free days, and prohibiting the ranking of students by test scores.

A 2023 report from the China Youth Research Center estimated that 30 million children and adolescents under 17 suffer from emotional or behavioral disorders. The 2023 Mental Health Blue Book reported similar results, finding depression rates of 40 percent among high schoolers, 30 percent among middle schoolers, and 10 percent among elementary students. Contributing factors include family pressure, high academic expectations, and a lack of emotional support. Rural children are particularly vulnerable, with 30 percent experiencing depression — far higher than the national average of 14.8 percent.

Phone addiction has also become a critical driver. Chinese youth aged 12–18 spend an average of 4.2 hours per day on their phones, and more than 70 percent report severe anxiety without them. Excessive phone use is linked to emotional swings, attention problems, and chronic sleep deprivation. Over 60 percent of students sacrifice sleep for phones, gaming, or television — further compounding mental-health risks.

Source: Radio France International, November 6, 2025
https://rfi.my/CA3d

Briefings | | |   Economy/Resources

China’s Foreign Minister Calls for “Fighting Spirit” in Diplomacy

Chinese Foreign Minister Wang Yi, writing in his capacity as director of the Communist Party’s Central Foreign Affairs Office, published a signed article in the Party’s mouthpiece People’s Daily declaring that implementing the Party’s foreign policy requires “upholding the fighting spirit.” Wang wrote that the Party has never been intimidated or deterred by pressure, and that only by daring to fight—and being skilled at fighting—can China overcome obstacles and push its diplomatic agenda forward through persistent struggle.

Wang said China has worked to “remove interference and overcome obstacles” in order to promote stable, healthy, and sustainable development in China–U.S. relations. At the same time, he called for strengthening China’s capacity to “fight,” enhancing strategic planning, leveraging multilateral platforms, firmly opposing what he described as “hegemonic and bullying behavior,” and rallying the maximum possible forces for peace and development.

The article—titled “Promoting the Building of a Community with a Shared Future for Mankind”—was published following the recent Trump–Xi meeting. Wang highlighted China’s deepening comprehensive strategic partnership with Russia, calling it a new model of major-power relations based on mutual respect and win-win cooperation. He described China–EU engagement as a link between “two major forces, two major markets, and two major civilizations,” while also emphasizing expanded cooperation with emerging economies and BRICS nations.

Wang called developing countries China’s “natural allies” in international affairs, stressing that China, as the world’s largest developing country, is committed to safeguarding their common interests. Building a “community with a shared future for mankind,” he wrote, is a central diplomatic task that requires strict implementation of Party directives—including maintaining the “fighting spirit.” He urged preserving strategic resolve, confronting severe challenges with confidence, and defending national sovereignty, security, and development interests with unwavering determination in the face of powerful rivals.

Source: Central News Agency (Taiwan), November 5, 2025
https://www.cna.com.tw/news/acn/202511050321.aspx

Briefings | | |   US-China Relations

Russia and China to Collaborate on Arctic Navigation Training

Russia and China have signed a memorandum to jointly train specialists for navigation in polar waters, Russia’s Ministry of Transport announced on November 3. The agreement was formalized in Hangzhou during Russian Prime Minister Mikhail Mishustin’s visit to China, with Russian Transport Minister Vitaly Savelyev highlighting the initiative as part of the delegation’s broader cooperation agenda.

Under the plan, Chinese trainees will study at two leading Russian maritime institutions—Admiral Nevelskoy Maritime State University and Admiral Makarov State University of Maritime and Inland Shipping. The program will follow international standards and combine classroom instruction with hands-on training, including the use of specialized simulators designed for polar conditions. The goal is to ensure graduates can operate safely and effectively in the harsh Arctic environment.

Savelyev noted that the memorandum aims to strengthen navigation safety in Arctic waters, protect seafarers’ lives, and safeguard fragile marine ecosystems in ice-covered regions. The cooperation reflects both countries’ growing interest in Arctic shipping and the strategic importance of the Northern Sea Route for global trade. As climate change opens new polar routes, demand for skilled personnel capable of navigating extreme conditions continues to rise. The partnership signals Russia and China’s intent to expand their expertise in polar navigation.

Source: Sputnik News, November 4, 2025
https://sputniknews.cn/20251104/1068206184.html

Briefings | | |   Geo-Strategic Trend

China’s Local Governments Borrow Record Amounts to Pay Off Old Debts

China’s local governments issued roughly 9.1 trillion yuan ($1.25 trillion) in bonds between January and October, the highest on record for this period, according to data from the Ministry of Finance. Nearly 60 percent of the funds went toward repaying existing obligations, underscoring mounting fiscal pressure at the local level.

A prolonged slump in the real estate market has sharply reduced land sales—traditionally a major revenue source—leaving many local authorities struggling to balance their budgets. According to a November 4 report from Yicai, bond issuance reached 9.1062 trillion yuan ($1.25 trillion), up 23 percent year-on-year, with much of the borrowing clustered in the first half of the year.

Of the total, new local government bonds amounted to about 4.7 trillion yuan ($646 billion), a modest 2 percent annual increase. Refinancing bonds surged 58 percent to 4.4 trillion yuan ($605 billion), reflecting policies rolled out by Beijing last October to help ease debt risks. These refinancing bonds are primarily used to roll over maturing debts, convert hidden liabilities into formal borrowing, and ease repayment pressure.

Local governments also issued some 1.25 trillion yuan ($172 billion) in special new bonds specifically aimed at resolving hidden debt and clearing overdue payments to companies. Combined with refinancing bonds, the amount dedicated to debt rollover reached 5.65 trillion yuan ($777 billion), accounting for 62 percent of total bond issuance during the period.

To further support local finances, the Ministry of Finance and the National Development and Reform Commission authorized an additional 500 billion yuan ($69 billion) in local government bonds in mid-October, including 300 billion yuan ($41 billion) to shore up fiscal capacity and 200 billion yuan ($27 billion) earmarked for eligible infrastructure projects.

Source: Central News Agency (Taiwan), November 4, 2025
https://www.cna.com.tw/news/acn/202511040181.aspx

Briefings | | |   Economy/Resources