China News Brief — September 11, 2025
Key Developments
Policies to Stabilize Foreign Trade
Vice Commerce Minister Li Chenggang said China will roll out measures to stabilize foreign trade and help firms weather external headwinds. Reuters
US-China Economic Dialogue in Madrid
U.S. Treasury Secretary Scott Bessent is set to meet Vice Premier He Lifeng in Madrid next week. The agenda includes trade, national security, TikTok, and agriculture. Reuters
Mass Unpaid Local Government Bills
Reports suggest China is looking at assisting local governments in resolving over US$1 trillion in unpaid bills to private sector firms by using state banks or policy banks. Reuters
Implications
China is emphasizing that it can manage external pressures (trade frictions, security concerns) via diplomatic and trade channels. The slide to assist local finances reveals sensitivity to domestic stability in the face of global economic stress.
Export-oriented firms may get short-term relief via trade-stabilization policies. But the scale of local govt debt signals systemic risk; payment delays could persist. Close attention should be paid to trade policies emerging from Madrid talks, especially re: agriculture and tech platforms.
