With trade hostilities between the world’s two economic superpowers back on, China has sent the unmistakable message that it is ready to fight. A week ago, it invoked its grip over virtually the entire global supply of critical materials, breaking a delicate trade détente between the two countries. Beijing feels it has another ace card: its booming factories. Even in the face of sky-high tariffs by President Trump, China’s manufacturing sector is helping to maintain growth and give the country’s top leader, Xi Jinping, a stronger hand to face down the United States.

Canada offered tariff relief on some steel and aluminum products imported from the U.S. and China, a government document showed, in efforts to help domestic businesses battered by a trade war on two fronts, Reuters reported. Prime Minister Mark Carney is negotiating with U.S. President Donald Trump, who imposed tariffs on Canadian steel and aluminum. His team also met with Chinese counterparts last week in an effort to secure relief on Chinese tariffs on Canadian agricultural goods. Canada's economy has come under strain as the impact of tariffs on Canadian exports to the U.S.

Chinese doctor Lisa Zhu took full advantage of consumer goods subsidies this year, buying three air conditioners and a washing machine - the big-ticket spending policymakers want to see from households as they target roughly 5% economic growth. But there is a catch. China's 300 billion yuan ($42 billion) subsidies, equivalent to about 0.2% of gross domestic product, are punching above their weight this year, with analysts saying the spending they incentivised had a greater impact on growth than their size.

Strong exports and continued investment in new factories offset faltering retail sales and a further erosion of China’s housing market as growth in the Chinese economy held steady over the summer, the New York Times reported. During the third quarter of the year, from July through September, China’s economy expanded 1.1 percent over the previous quarter, maintaining roughly the same pace as during the spring, China’s National Bureau of Statistics said in a statement on Monday. If that pace continues, the economy will expand about 4.1 percent over the next 12 months.

China's new home prices fell at the fastest pace in 11 months in September, worsening the property sector's drag on broader economic growth as policymakers struggle to revive the flailing market, Reuters reported. Persistent property market weakness is weighing on consumer confidence and sapping household spending, building the case for policymakers to step up support to shore up growth amid global trade threats. New home prices fell 0.4% month-on-month, following a 0.3% fall in August, according to calculations by Reuters based on National Bureau of Statistics data released on Monday.

The International Monetary Fund (IMF) revised up Asia's economic growth forecast on Thursday, but warned that renewed escalation in U.S.-China tensions could deal a heavy blow to a region heavily integrated in global supply chains, Reuters reported. Economic activity in the Asia-Pacific was holding up better than expected in April, despite the region bearing the brunt of U.S. tariffs, said Krishna Srinivasan, director of the IMF's Asia and Pacific Department.

Supertanker freight rates surged this week and are set to stay elevated on U.S.-China tit-for-tat hikes in port fees and concerns about the fallout from U.S. sanctions on a major Chinese crude oil terminal, Reuters reported. Chinese retaliatory port fees announced on Friday would add more than $7 a barrel in shipping costs for a Very Large Crude Carrier linked to the U.S., traders estimated. That would be equivalent to a charge of around $15 million - a sum that would put anybody off chartering ships related to the United States.

Solar glass producer Haikong Sanxin New Energy Materials will apply for bankruptcy to curb mounting losses, in the latest sign of the financial difficulties facing the solar industry in China, home to around 80% of global production, Reuters reported. Haikong Sanxin posted a net loss of 194.5 yuan ($27.3 million) for January-June 2025 and 659 million yuan in debt, parent company Hainan Development Holdings Nankai said in a filing on Thursday.

The U.S. is one week away from imposing port fees on certain vessels with links to China, a move expected to cost the top 10 carriers $3.2 billion next year as President Donald Trump seeks to address China's growing dominance on the high seas, Reuters reported. "While some observers believe the October 14 deadline may be extended — or even scrapped — as part of broader negotiations, the uncertainty has already unsettled carriers, adding another layer of geopolitical risk to fleet deployment strategies," S&P said in a report this week.