Post Asean – All Business is Yuan Business

While countries are generally dealing with tariffs individually, they will now be handled as a bloc.  The broader business environment is moving toward Yuan-based transactions.

The Most Important – Extension of the Free Trade Area

Recently, positive progress has been made in the process of regional economic integration in the Asia-Pacific. The upgraded protocol of the China-ASEAN Free Trade Area (FTA) 3.0 was officially signed, and the fifth Regional Comprehensive Economic Partnership (RCEP) Leaders’ Meeting was held, during which a joint statement was issued. Meanwhile, the International Monetary Fund (IMF) and others have also warned that although the Asia-Pacific remains the fastest-growing region in the world, rising tariffs and protectionism could exacerbate economic vulnerabilities.

The Asia-Pacific is the world’s most dynamic economic player and engine of growth and a forerunner in regional cooperation and economic integration. More than three years since the entry into force of the RCEP, economic cooperation and trade between member states has continued to deepen and regional economy has maintained relatively rapid growth.  China and ASEAN have been each other’s largest trading partner for five consecutive years.

In preparation of Xi Jinping meeting with Trump:

At the regular press conference of the Chinese Ministry of Foreign Affairs on October 29, a reporter raised a question regarding the possible discussion of the so-called “fentanyl-related tariffs” during the meeting between the Chinese and US heads of state, Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun said at Wednesday’s press conference that China’s position on this issue is consistent and clear. China is the most resolute in combating drugs, with the most thorough policies and the best record. It is also one of the countries with the most extensive list of controlled substances and the strictest regulatory measures in the world, he added.

[There is no sympathy here.  China is standing fast that the US must deal with US problems. ]

The Export-Import Bank of China (China Eximbank) on Wednesday signed multiple cooperation agreements with international financial institutions as well as domestic and foreign enterprises at a parallel forum during the Annual Conference of Financial Street Forum 2025, as financial cooperation is increasingly being deepened among partner countries and international organizations for high-quality Belt and Road cooperation.

China Eximbank signed a cooperation agreement with the National Bank of the Republic of Uzbekistan for Foreign Economic Activity. According to the agreement, the two sides will establish more solid peer-to-peer cooperation channels in a bid to jointly contribute to high-quality Belt and Road cooperation and the building of a community with a shared future between China and Uzbekistan.

In addition, the bank signed an agreement with the Development Bank of Kazakhstan related to major financing terms of a 2 billion yuan ($282 million) loan facility, while it also signed a memorandum of understanding with public company “Motorways Republic of Srpska”, Liability Company Banja Luka.

There are many more.

To date, the bank’s outstanding balance of loans for BRI projects has exceeded 2 trillion yuan, and the bank has outperformed the task on delivering a 350 billion yuan financing window,” Chen Huaiyu, chairman of China Eximbank, said at the forum.  With the Belt and Road Initiative (BRI) first proposed in 2013, China has forged high-quality BRI cooperation ties with more than 150 countries and more than 30 international organizations.

The wake-up call has already sounded for ‘Taiwan independence’ separatists:

A clear trend is taking shape. The Chinese mainland is moving more decisively to punish “Taiwan independence” separatists, while in the US, a growing chorus is advocating a sober, reality-based reassessment of the Taiwan question. For the separatists still lost in their fantasies, the wake-up call has already sounded.

A police probe against “Taiwan independence” separatist Shen Pao-yang over secession charges is a just and necessary move to safeguard national unity, a spokesperson for China’s State Council Taiwan Affairs Office said on Tuesday. Chen Binhua, the spokesperson, made the statement after police in Chongqing announced that they had launched a criminal investigation against Shen over his suspected acts of secession, including initiating and establishing the separatist organization, the Kuma Academy.

In the past, China published lists of diehard “Taiwan independence” separatists, but the move was largely a political warning. This time, however, the decision to open a formal criminal probe against Shen marks a turning point, experts noted, emphasizing that it reflects a shift in actions against diehard separatists – from political warning to legal enforcement.

Nvidia CEO’s stands firm that US AI chips need to be exported to China:

Nvidia is losing business.

According to Nikkei Asia, Huang on Tuesday told reporters and analysts that if Nvidia continues being shut out of the Chinese market, it will hurt America more than it hurts China, after he delivered his first-ever speech at the company’s GTC DC developer conference in Washington.

The US government has been tightening exports of advanced AI chips to China from Nvidia and others, along with chipmaking tools, in recent years, and the chip giant’s CEO said that he hoped the US administration could see the harm such policies will do to the US, Nikkei Asia reported on Wednesday.

“We want to compete against China, no doubt about that. We want America to win this AI race, no doubt about that … But we also need to be in China to win their developers. A policy that causes America to lose half of the world’s AI developers is not beneficial in the long term,” said Huang, according to the report.

Huang said at a question-and-answer session with reporters and analysts Tuesday afternoon that the US administration is working on new regulations to allow the government to take a 15 percent cut from its China sales, and claimed China has not decided whether it will allow Nvidia chips to go back into the country. “Our job is just to wait until they want us to be there,” Huang claimed, according to the report.

He added that shares of Chinese domestic chipmakers have jumped significantly with Nvidia leaving the country, which should be a sign for Washington to move fast to bring it back into the market. According to Nikkei Asia, Huang said that “This is a country with a lot of technological might. This is a country with a lot of manufacturing might. They’re not waiting around for us.”

Ma Jihua, a veteran tech analyst, told the Global Times on Wednesday that despite US chip restrictions on China, the country has been steadily advancing its industrial capabilities, accelerating the development of independent and self-reliant products, and strengthening its own supply chain.

“At present, China has become a major consumer and producer in the global chip market, and the Chinese market remains critical for the entire chip industry, including American companies,” Ma said.

On October 6, Huang said at a Citadel Securities event that the company’s position in China had dropped from 95 percent of the advanced chip market to zero, as the US semiconductor giant is not allowed to sell its advanced products to Chinese mainland companies under US export restrictions, the South China Morning Post reported.

Ma said that Huang’s remarks showed that the CEO has recognized the indispensability of the Chinese market. However, due to the pressure imposed by the US government, he has to make concessions to seek a balance, the expert said.

“The US should stop politicizing and weaponizing economic, trade, and technology issues, as such actions hinder the development of the global semiconductor industry and will ultimately backfire, harming others while damaging the US itself,” Ma warned.

Is there really a ‘rare-earth crisis’ between China and Europe?:

China is the world’s largest producer and exporter of rare earths, a natural outcome of resource allocation in economic globalization. China-EU cooperation in rare earths also reflects the high degree of economic complementarity between the two sides. China’s long-term exports of rare earths to the EU have provided substantial support for the EU’s digital and green transition goals, enhancing its economic competitiveness and security. The EU has been benefiting from China’s rare-earth industry.

China’s recent export control measures are part of the ongoing transformation and upgrading of its rare-earth sector. They are not a temporary move, but a necessary step to ensure the long-term stability of the rare-earth production and supply chain and, what’s more, an alignment with global green development trends. At the same time, in the context of turmoil and frequent military conflicts in the world, China’s implementation of export controls on dual-use items like rare earths represents its proactive fulfillment of international non-proliferation obligations and its commitment to defending world peace and stability. 13 countries around the world, including several in Europe, have implemented similar export controls. Why, then, is it labeled a “threat” only when China does so? Those who fear that China might “weaponize national security” to choke Europe’s supply should first reflect on whether they harbor such thoughts toward other countries.

The Chinese side formulated relevant regulations with full consideration of the concerns of all trading partners, a process that was highly responsible. The relevant measures are prudent and moderate. According to the Ministry of Commerce of China, before the measures were announced, China had already notified relevant countries and regions through bilateral export control dialogue mechanisms. In addition to that, China specifically established a “green channel” for European firms and held multiple rounds of consultations and dialogues with the EU at various levels. Facts have proven that China keeps its words: In the first half of 2025, more than 60 percent of EU companies obtained export licenses through this channel. Recently, several enterprises in Bavaria, Germany, have also successfully received approvals to import rare-earth materials. Rare-earth exports have never been, and should never become, a problem between China and Europe.

The so-called “rare-earth anxiety” among some in Europe is essentially a cognitive issue. In their eyes, in any field, the more one engages with China and the closer the ties, the more it is seen as “dependence” and a “risk.” The real problem between China and Europe does not lie in rare earths, but in whether Europe can break free from geopolitical manipulation, correct its cognitive bias toward China, and return to a rational and pragmatic policy track. Lately, some US media outlets have been hyping up the so-called “China rare-earth threat,” and certain Europeans have followed suit. This is not only a serious act of self-deprecation but also a typical case of strategic confusion.