A Trader’s Guide to China’s Biggest Political Meeting of 2025

China's stock market is showing signs of a rally, and investors are hopeful for new policies to support tech and solar companies during this week's economic policy meeting in Beijing. This is significant as it could provide the necessary boost for the market, helping to stabilize and potentially enhance growth in these key sectors.

Chinese President Xi Jinping and top Communist Party officials are gathering in Beijing to outline the country's next five-year plan, focusing on industrial development. This meeting is crucial as it sets the direction for China's economic policies. However, recent economic data suggests challenges ahead, highlighting the importance of this planning session in addressing potential issues.

China's economic growth is experiencing a slowdown, primarily due to escalating trade tensions with the United States, which have led to the imposition of tariffs. While Beijing has managed to avoid a significant downturn, these challenges could have long-term implications for its economy and global trade dynamics.

China's aggressive strategies over the past few decades have allowed it to dominate the global rare-earths industry, raising concerns about supply chain vulnerabilities for other nations. This consolidation of control not only impacts international trade but also poses risks for technology sectors reliant on these critical materials, making it a significant issue for global economic stability.

China's aggressive strategies over the past decades have allowed it to dominate the global rare-earths industry, raising concerns about supply security and geopolitical tensions. This consolidation of control not only impacts international trade but also poses challenges for countries reliant on these critical materials for technology and defense.

Chinese tech giants have halted their stablecoin initiatives following intervention from Beijing, according to reports. This move highlights the increasing scrutiny and regulatory pressure on the cryptocurrency sector in China, which could significantly impact the future of digital currencies in the region. As these companies navigate the complex landscape of financial regulations, the pause in their stablecoin plans raises questions about innovation and competition in the global crypto market.

Chinese tech giants have halted their stablecoin initiatives following intervention from Beijing, which has raised alarms about the potential risks of privately controlled currencies. This move highlights the increasing scrutiny from regulators aimed at maintaining financial stability and consumer protection. The decision is significant as it reflects the government's stance on digital currencies and could impact the future of innovation in the fintech sector.

Analysts are warning that China's reliance on rare earths could backfire, especially as former President Trump explores ways to impact China's economy. With Western companies dominating over 70% of the chip design software market in China, this situation poses a significant threat to Beijing's advanced manufacturing sector. Understanding these dynamics is crucial as they could reshape global trade and technology landscapes.

Cleveland-Cliffs is experiencing a surge in demand for its steel products, thanks in part to favorable trade policies from the Trump administration that support U.S. manufacturing. The company is also looking to diversify its operations by exploring the production of rare-earth minerals, which are crucial for various high-tech applications. This move not only strengthens its market position but also highlights the growing importance of domestic production in the face of global supply chain challenges.

Kering has announced a significant $4.7 billion deal to sell its beauty business to L’Oréal, marking a strategic move by the new CEO, Luca de Meo, to rejuvenate the company's performance. This sale is crucial as it allows Kering to focus on its core luxury brands while L’Oréal expands its portfolio in the beauty sector. Such a transaction not only reflects the evolving landscape of luxury and beauty but also highlights Kering's commitment to strengthening its market position.

Amazon's AWS experienced significant disruptions, leading to outages for hundreds of websites for several hours. This incident highlights the vulnerability of online services that rely on cloud infrastructure, affecting businesses and users alike. The impact of such outages can be far-reaching, causing loss of revenue and frustrating users who depend on these platforms for daily activities.

Crude oil prices are continuing to decline due to concerns over supply and demand. Factors such as weak growth projections, the ongoing energy transition in China and the EU, and tensions from U.S.-China tariffs are contributing to this negative outlook. This matters because fluctuations in oil prices can significantly impact global economies and consumer behavior.

Merck has released long-term data demonstrating that its cancer treatment, KEYTRUDA, continues to provide significant survival benefits for patients with lung cancer. This is important because it reinforces the effectiveness of KEYTRUDA as a vital option in cancer therapy, potentially improving the quality of life for many patients facing this challenging disease.

Abbvie's stock price target has been raised to $258 from $240 by BMO Capital, reflecting growing confidence in the company's future performance. This adjustment is significant as it indicates analysts' optimism about Abbvie's potential for growth and profitability, which could attract more investors and positively impact the stock market.