China Plans October Plenum as Economic Pressures Mount

China will hold its fourth key conclave in October, likely focusing on the next five-year plan, according to Xinhua News. The announcement follows a recent Politburo meeting where leaders pledged to address mounting economic risks, including deflation, industrial overcapacity, and a prolonged property slump. Meanwhile, producer prices fell for the 33rd consecutive month in June, and the impact of consumer trade-in subsidies is expected to wane. The Politburo emphasized curbing “disorderly competition” and advancing capacity cuts in key sectors. Beijing also plans to boost domestic demand, accelerate government bond issuance, and promote innovation in globally competitive industries. A temporary lift has come from exporters rushing to benefit from a tariff truce with the U.S., with both countries agreeing to seek an extension after constructive trade talks in Stockholm.