Europe Has Finally Had Enough of China | Xi’s Order | Chinese Economy

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1:00Hi, this is Dave Roberts. Heading into summer without a medical emergency kit, that's a risk. Summer colds can linger and getting sick on vacation can derail everything. That's why everyone needs a medical emergency kit. It includes doctor prescribed medications to treat common and serious illnesses. So if you wake up sick at home or on the road, you already have what you need. It's like having an urgent care and pharmacy at home. Say $45 with code blue at urgentcairedkit.com slash blue. urgentcairedkit.com slash blue. Happy first everybody. Welcome to another episode of China Update where we discuss leading political, economic and geo-strategic analysis on the world's number two economy. My name is Tony. Today's episode is sponsored by FUME, more on them shortly, but first we begin with Xi Jinping and China's global diplomacy push. Let's jump in. General Secretary Xi Jinping has used visits to Kyrgyzstan and Egypt to promote Beijing's vision of a multipolar international order while expanding China's economic and technological

2:02influence across Eurasia and the Middle East. Speaking in Kyrgyzstan at the Shanghai Corporation Organization's 25th anniversary summit, she declared that the global shift toward multi-polarity was quote irreversible, in quote, he argued that international affairs should not be dominated by one country, a small group of powers or competing geopolitical blocks. Although she did not name the United States, his criticism of quote double standards, exceptionalism, interference and bullying, in quote, was clearly directed at Washington and the Western led international order. She also announced several practical initiatives for SCO members. These included the international artificial intelligence application, cooperation center, additional large scale solar and wind projects, 100 science and technology programs over three years, and new centers focused on education and port economy cooperation. Security remained another major theme. She backed the establishment of four SCO security centers and called on members to resist external interference that could threaten their

3:03political systems. Once again, this was a valid statement against the US-led West. The diplomatic campaign continued in Egypt, where she marked 70 years of bilateral relations. China and Egypt signed agreements covering the Belt and Road Initiative, artificial intelligence, trade, industrial cooperation and supply chains. Egypt hopes to attract more Chinese manufacturers gain access to technology and establish itself as an export hub connecting Asia, Africa, Europe and the Middle East. Chinese auto makers are already planning local assembly. While Chinese companies have invested heavily in the Suez Canal economic zone and helped construct Egypt's new administrative capital and light rail system. China is Egypt's largest trading partner with bilateral trade exceeding 20 billion US dollars last year, around 60% higher than a decade earlier. Together, the SCO summit and Egypt visit this week illustrate Beijing's broader strategy, securing support from the developing world through investment, technology and diplomatic partnerships, or presenting China as an alternative center of global leadership. However, as she

4:05advanced China's influence overseas, closer to home, that influence is being challenged. The catastrophic floods and mudslides along the China-Napole border have created a major test for Beijing's claim that closer ties with China deliver meaningful benefits to developing countries. The disaster has killed at least 1,100 people in Nepal and officially at least 21 in China, while more than 4,000 remain missing. Chinese Indian and Nepali specialists are working alongside Nepal's army to search mud-covered hydropower projects and the devastating Gildong port. China has dispatched aid and rescuers, cleared the road leading to the border crossing and defended its efforts to share disaster information. However, questions are growing in Nepal about whether Beijing's advanced monitoring capabilities could have provided an earlier warning. Scientists believe the disaster began when part of a glacier and surrounding bedrock collapsed, creating a massive torrent of water mud and debris. Although this event

5:05originated inside Nepal, previous floods have begun in Tibet before surging across the border. Despite repeated demands, China and Nepal stole like a formal system for sharing real-time information about glacial lakes, landslides and other Himalayan hazards. Experts argue that China's satellite and monitoring technology could provide Nepal with critical warning time. The destruction of Yorong port also carries wider economic significance. The crossing symbolized China's growing influence in Nepal and handled large volumes of Chinese consumer goods and electric vehicles. bilateral trade doubled from $1.1 billion in 2018 to $2.2 billion in 2024, overwhelmingly consisting of Chinese exports. Several planned Belt and Road rail and electricity connections were also expected to pass through the area, rebuilding the crossing and establishing an effective cross-border warning system will demonstrate where the China's expanding regional influence can provide resilience when its smaller partners face catastrophe.

6:05Now next up we move to the Chinese economy, but first, if you've ever tried to quit vaping or smoking and always ended up going back, you need to try our latest sponsor, FUME. nicotine pouches, patches and gum only address the nicotine while still keeping you reliant on it, and cold turkey is extremely unsustainable, over-focusing you on every craving and expecting pure willpower to carry you. But vaping and smoking aren't just a nicotine problem, they're a habit problem. After repeating the actions thousands of times your brain learns to expect it. That's exactly why FUME works. Third-party surveys have rated FUME twice as effective as other quit solutions on the market. FUME is a flavoured ear device made from real wood and metal that gives your hands, mouth and brain something better to reach for when cravings at. FUME has no nicotine, no vapour and no batteries. It isn't designed to mimic vaping, it's designed to help you quit. It's light, beautifully designed and easy to use, I've personally recommended it to family members. For limited time, until the 15th of September, get 30% off the good habit pack with everything you need to kick back into gear after summer

7:09and get your habits back on track. Bus use my code, China Update, and check out to receive a free gift. Over 1 million people have already used FUME, quit differently, and the only question is whether you're ready to take the first step too. Check out FUME in the description box below. A big thank you to FUME for sponsoring this episode of China Update. We now return to regular China Update coverage. China's government bond sales are expected to accelerate during the remainder of the year as Beijing seeks to support a weakening economy without launching a largest stimulus package. Local governments issued approximately 7.7 trillion yuan in bonds during the first eight months of the year, up 1.3% from the same period in 2025, and the highest level ever recorded for the period. Issuance was heavily concentrated early in the year. Bonds sold during the first quarter, equaled 53% of the entire first half total. Pace subsequently slowed before rebounding sharply in June, traditionally a peak month, when issuance increased 42.7% from May. Despite the record headline figure, central and local

8:14governments remain behind schedule relative to their annual quotas. Authorities used approximately 68% of the combined quota by the end of August, compared with 76% during the same period last year. Central government bond issuance reached just 65% of its allocation, the slowest pace since 2022. A large proportion of the borrowing is also being used to manage existing liabilities rather than finance new economic activity. A big red flag. Local governments issued 1.8 trillion yuan in refinancing bonds during the first eight months, including bonds intended to replace hidden debt and repay maturing obligations. And as said, the arrival of a peak period for local government bond maturities was the principal reason overall issuance remained elevated. This limits the immediate economic impact because refinancing debt does not necessarily produce new infrastructure investment or demand. With property investment, household consumption and private sector confidence remaining weak, officials are calling for the remaining bond quota to be deployed more quickly. Unless

9:15economic conditions deteriorate substantially, accelerating previously approved issuance appears likely to remain Beijing's preferred form of stimulus, providing incremental support while avoiding a dramatic expansion of central government borrowing. Regular viewers of China update will know, of course, that the reason for this is because China's central government balance sheet remains the only clean one left with debt surging everywhere else. Policymakers are fast running out of fiscal space. Next up, and funny for today, European Union officials are holding intensive talks in Beijing as Brussels searches for a diplomatic solution to its rapidly deteriorating trade relationship with China before an October deadline. The European delegation is led by Dennis Reddinit, the bloc's top trade enforcement officer, and its new point person on China trade policy. His appointment reflects a fundamental shift in Europe's approach. China is increasingly viewed less as an economic partner and more as a competitor and systemic rival. Data Yorgerson, one of the EU's most senior trade officials, is expected to visit Beijing

10:16later this month. EU Trade Commissioner Sofkavik is also has plans to speak with Chinese comments minister Bung Lental before traveling to China in early October. Sofkavik said the EU needed, quote, tangible results, in quote, by October, including pilot programs addressing China's industrial-evid capacity and surging exports. He described the negotiations as open but extremely difficult, with all major trade disputes on the table. Brussels wants China to import more European products while moderating the flood of Chinese goods entering the European market. In July, China expanded its trade surplus with all but three EU members, compared with the year earlier. Germany, traditionally one of Europe's strongest advocates for commercial engagement with Beijing, is also becoming more confrontational. Chinese exports to Germany increased 14.4% in Chinese UN terms during the first seven months of 2026, while Chinese imports from Germany fell 2.4%. The German Finance Minister said Berlin would soon introduce measures targeting what it considers

11:17unfair Chinese trade practices. The shift is particularly significant because German manufacturers once heavily dependent on the Chinese market are increasingly concerned about competition from Chinese companies in automobiles, machinery and clean technology. Beijing rejects the EU's diagnosis. Chinese commentators and state media argue that Germany's industrial problems primarily reflected declining competitiveness, slow innovation, high energy costs and excessive regulation. Not unfair Chinese trade. China has also warned that European efforts to reduce reliance on Chinese solar panels, batteries and other clean technologies will increase costs and slow the continent's green transition. The dispute reflects a deeper structural conflict. China's weak domestic demand and manufacturing heavy economic model generate enormous export surpluses, while Europe fears that subsidized Chinese production will hollow out its industrial base, not exactly an unfounded fear. Both sides have powerful incentives to compromise, but without meaningful Chinese concessions, Europe appears increasingly prepared to deploy tariffs, procurement restrictions and other trade defences, even at the risk of a retaliation from Beijing

12:22and a full-blown trade war. Okay, that is today's episode of China Update. Thank you so much everybody for watching. Have a good Thursday and I hope to see you for the next episode which will either be tomorrow or on Saturday. Shop vans and Albertsons for fresh savings every time you shop. This week at vans and Albertsons get fresh, boneless, skinless chicken breasts for 199 per pound limit 10 pounds and locally grown grape re cotton candy grapes are 299 per pound with digital coupon. Plus 24 packs of Canada dry or 7-up 12-ounce cans are 499 limit 1 with digital coupon. Enjoy fresh and delicious savings for every meal. Hurry in, these deals won't last. Visit vans or Albertsons.com for more deals and ways to save.

13:34Shop vans and Albertsons for fresh savings every time you shop. This week at vans and Albertsons get fresh, boneless, skinless chicken breasts for 199 per pound limit 10 pounds and locally grown grape re cotton candy grapes are 299 per pound with digital coupon. Plus 24 packs of Canada dry or 7-up 12-ounce cans are 499 limit 1 with digital coupon. Enjoy fresh and delicious savings for every meal. Hurry in, these deals won't last. Visit vans or Albertsons.com for more deals and ways to save.