China’s Premier Li Qiang commented on the adverse effects unilateral and protectionist measures have had on the global economy. He emphasised the importance of equality, mutual benefit, and legitimate common interests, particularly as global economic growth slows.

Li Qiang stated China’s willingness to collaborate with international parties to create an open and inclusive environment. The world has witnessed an increase in trade restrictions, complicating business operations and adversely affecting many nations, especially those in developing areas.

China Advocates Ethical Economic Practices

China advocates for ethical economic practices, suggesting that countries should balance national interests with global welfare. Despite market limitations, China is committed to increasing imports to demonstrate its responsibility towards the global good.

China aims to reform global trade rules and governance to address detrimental tariff impacts on international trade protocols. There’s an urgent need for enhanced global economic governance to ensure fairer, more transparent trade rules.

With a focus on high-quality development and creating new growth drivers in digital sectors, China prioritises economic expansion. The Chinese economy is projected to surpass 170 trillion yuan within five years, driven by intensified policies and efforts to stimulate demand and continuous growth.

Given the emphasis on countering protectionism, we should anticipate a potential short-term strengthening of the Chinese yuan. The offshore yuan (CNH) has been trading weakly against the dollar, recently hitting a 12-month low of 7.42 in October 2025 due to global growth concerns. These statements could provide a floor, making call options on the yuan attractive for a tactical trade.

Opportunities In Equity Markets

The pledge to boost demand and expand imports is a clear bullish signal for industrial commodities. We saw China’s October 2025 commodity import data show a slight dip, which contributed to copper prices falling 4% last month. Any follow-through on this promise could reverse that trend, suggesting long positions in copper and iron ore futures could be profitable.

For equity markets, the focus on new growth drivers in digital areas is key. The Hang Seng Tech Index has underperformed the broader market by nearly 15% year-to-date in 2025. This targeted support could spark a relief rally, making it a good time to consider buying call spreads on ETFs that track Chinese technology companies.

The criticism of tariffs and the call to reform trade rules may also benefit export-heavy economies that trade with China, such as Germany. We remember the market volatility during the trade disputes of 2018-2022, which heavily impacted German industrial stocks. A softer tone from Beijing could reduce perceived risk, tightening credit default swap spreads on European industrial giants.

The promise of “more intensive and effective micro policies” introduces a degree of uncertainty that derivative traders can use. After China’s Q3 2025 GDP growth came in at 4.4%, just below consensus forecasts, the market has been waiting for stimulus. This ambiguity suggests volatility may rise, so straddles or strangles on major Chinese equity indices could be a prudent strategy to trade the outcome of any new policy announcements.

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