Navigating Economic Currents: China’s Golden Week Success Meets US Tariff Challenges Ahead of APEC Summit
China’s Golden Week Momentum Faces US Tariff Tensions Ahead of APEC Summit
By Bob Mason | Published October 7, 2025, 02:53 GMT
China’s Golden Week holiday fuels more domestic trips and higher spending. This week raises hope for a year-end economic boost. Trade issues with the US add stress. The APEC summit nears. Tariff tensions risk dimming this bright pulse.
Record-Breaking Golden Week Travel Signals Economic Uptick
China’s eight-day Golden Week now acts as a sign of home demand. On October 1, rail systems moved over 23 million travelers. This day broke past records. The strong travel count points to a rise in buyer activity that may help reach the 5% GDP growth goal for 2025. Shops and travel spots see spending that shows buyers feel more secure. These gains come even as warnings about soft global demand and lower exports due to US tariffs persist.
Economic Pressures from US Tariffs and Rising Unemployment
Even with the holiday boost, hard issues show up in economic life. US tariffs press China’s factories and export plans. Many firms cut prices to stay in the race. These slim profits lead companies to reduce costs by letting go of staff. New numbers mark a rise in China’s job stress. The national rate grew from 5.2% in July to 5.3% in August. Youth job loss climbed to 18.9% from lower weeks in previous months. High job loss among young workers questions if the rise in spending will last. Strong demand from abroad would help firm up the recovery.
Key Role of the Upcoming APEC Summit
Domestic spending still shows weak points. Foreign trade steps now matter a great deal. The APEC Summit will run from October 31 to November 1. Leaders Trump and Xi now take center stage. Markets watch the talks for signs of progress on cutting US tariffs. Beijing has used retaliatory tactics on key US exports, such as farm products. For example, China now buys beef and soybeans from countries like Australia and Argentina. These shifts stir sharp claims from Trump’s team.
Shaun Rein, founder of The China Market Research Group, said:
"China is no longer buying American beef; they are buying Australian beef. China is no longer buying American soybeans; they are buying Argentinian soybeans."
He also noted that China stopped US chip imports as it speeds home chip production.
President Trump spoke on the soybean matter. He promised help for US farmers affected by China’s buying choices, and he did not call out extra tariffs on Chinese farm goods. This stands apart from the 50% tariff on India for Russian oil buys, while China stays the largest buyer of Russian oil. Quiet talks seem to move behind the scenes ahead of the summit.
Market Implications and Economic Outlook
Trade gaps now add a risk for investors. Before the holiday, China’s stock scene showed strength. The CSI 300 climbed 3.2% in September, and the Shanghai Composite reached a ten-year high. Yet the return of trade fights stays a big worry.
US job data now weighs on thoughts for policy steps. Signs of slow growth with higher prices in the US could add more stress to talks. Meanwhile, Beijing must work hard to boost the economy without fresh support measures.
Some expect that President Xi may use likely US investment hints to aid trade talks. This step could add jobs on US soil and sweeten a deal. What President Trump might ask for in return still stays unclear.
What to Watch Next
As Golden Week ends, market watchers view fresh Chinese numbers. They look at store sales and job data to see if the spending rise will hold. Trade moves and soft signals before the APEC Summit now decide if the new hope will lead to lasting gains or if trade stress will come back.
In sum, even as Golden Week ignites a bright push for the economy, big challenges still stand. The next US-China trade steps will shape the view for both nations and the wider global market.
For ongoing coverage of China’s economy, US-China trade relations, and APEC Summit developments, stay tuned to FXEmpire.
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