China’s Premier Li Qiang noted the negative impact that unilateral and protectionist actions have on the global economy. He stressed the need for equality, mutual benefit, and shared interests, especially as global economic growth starts to slow. Li Qiang expressed China’s readiness to work with other countries to create an open and inclusive system. Recently, there has been a rise in trade restrictions that make business operations more difficult and hurt many countries, particularly in developing regions. China promotes fair economic practices, urging nations to balance their own interests with global welfare. Despite facing market challenges, China is dedicated to increasing imports to show its commitment to global well-being. China aims to change global trade rules and governance to tackle the negative effects of tariffs. There is an urgent need for better global economic governance to ensure fair and clear trade rules. By focusing on high-quality development and exploring new growth areas in digital sectors, China is prioritizing economic growth. Experts forecast that China’s economy will surpass 170 trillion yuan within five years, driven by strong policies aimed at boosting demand and sustaining growth. With the emphasis on fighting protectionism, we might see a temporary strengthening of the Chinese yuan. The offshore yuan (CNH) has been weak against the dollar, recently dropping to a 12-month low of 7.42 in October 2025 due to worries about global growth. Li Qiang’s statements could help stabilize the yuan, making options trading on it an appealing choice. The commitment to increasing demand and imports signals positive news for industrial commodities. In October 2025, we noted a slight decline in China’s commodity imports, which led to a 4% drop in copper prices last month. If China follows through on its promises, it could reverse this trend and suggest that investing in copper and iron ore futures could be worthwhile. For stock markets, the focus on growth in digital sectors is crucial. The Hang Seng Tech Index has lagged behind the overall market by almost 15% year-to-date in 2025. This targeted support could lead to a rally, making it a good moment to consider buying call spreads on ETFs that track Chinese tech firms. Li Qiang’s criticism of tariffs and the call for trade rule reform may also help export-driven economies that trade with China, like Germany. We recall the market turbulence during the trade disputes from 2018 to 2022, which significantly impacted German industrial stocks. A softer approach from Beijing could reduce perceived risks, tightening credit default swap spreads for major European industrial companies. The idea of “more intensive and effective micro policies” adds some uncertainty that derivative traders could exploit. After China reported a Q3 2025 GDP growth rate of 4.4%, slightly below what was expected, the market is anticipating stimulus measures. This uncertainty may lead to more volatility, so using straddles or strangles on important Chinese equity indices could be a smart move to navigate any new policy announcements.

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