Morning Read: China and the U.S. Reach Preliminary Consensus; Draft Opinions Sought on New Steel Capacity Replacement Plans

◎ Chinese President Xi Jinping will travel to Gyeongju, South Korea, from October 30 to November 1 to attend the 32nd APEC Economic Leaders' Meeting and pay a state visit to South Korea. Regarding whether a meeting between Chinese and U.S. leaders will take place during the APEC summit, Foreign Ministry Spokesperson Geng Shuang stated that China and the U.S. are maintaining close communication on the planned summit meeting, and the Chinese side will release further details promptly if available.

◎ Premier Li Qiang met with Singapore's Acting President Tang Cheng Yee at the Istana in Singapore. Li Qiang noted that China is ready to work with Singapore to unlock the potential for economic and trade cooperation, while expanding collaboration in emerging fields such as the digital economy, green development, and artificial intelligence—areas that will inject greater momentum into each country's modernization efforts.

◎ From October 25 to 26 local time, He Lifeng, China's lead negotiator for China-U.S. economic and trade issues and Vice Premier of the State Council, held China-U.S. economic and trade consultations with U.S. Treasury Secretary Janet Yellen and Trade Representative Katherine Tai in Kuala Lumpur, Malaysia.

◎ Li Chenggang, China's International Trade Negotiation Representative and Vice Minister of Commerce, told Chinese and foreign media reporters after the talks that both sides have reached a preliminary consensus on properly addressing several key economic and trade issues of mutual concern. The next step will be to complete their respective domestic approval procedures.

◎ The Ministry of Industry and Information Technology has launched a public consultation on the "Implementation Measures for Capacity Replacement in the Iron and Steel Industry (Draft for Comments)." The draft emphasizes that key regions are strictly prohibited from expanding their total steel production capacity, transferring steel-making capacity from non-key to key regions, or relocating capacity among different key regions. Meanwhile, the capacity replacement ratio for ironmaking and steelmaking in each province (region, municipality) must be no lower than 1.5:1.

◎ Hebei's Tangshan, Langfang, Handan, and Baoding have activated a Level-II emergency response for severe pollution starting from 12:00 on October 27. Some steel plants in the Tangshan area reported receiving notifications extending the production restriction period for sintering machines until the end of October, while blast furnaces will operate at reduced capacity, with 30% of their normal output maintained through焖炉 (muffled furnace) operations. Companies are now tailoring their emission-reduction plans based on their individual production conditions. As of October 24, the average daily molten iron output across Tangshan’s steel plants stood at 396,900 tons. If we assume a 30% reduction in blast furnace output, this would result in an estimated daily impact of 91,000 tons of molten iron. Over a period of 4.5 days, the total impact on molten iron production would reach approximately 409,500 tons.

◎ Starting Monday, several European countries will switch to winter time, shifting trading hours in European financial markets and the release times of economic data back by one hour compared to summer time.

◎ The China Nonferrous Metals Industry Association emphasized the need to firmly maintain confidence in development, safeguard a healthy industry ecosystem, strengthen industry self-discipline, prevent "involution"-style vicious competition, and ensure the security of industrial and supply chains.

◎ The China Federation of Logistics & Purchasing has launched an "Anti-Involvement" initiative, firmly opposing the unhealthy practice of low-quality, low-price competition in the warehousing industry. In all stages of the bidding process, it is strictly prohibited to submit bids below cost.

◎ The National Development and Reform Commission's Price Monitoring Center held an expert seminar on promoting the high-quality development of the energy storage industry, focusing on discussions about enhancing industry mechanisms and ensuring profitability, as well as fostering healthy competition and preventing "involution."

◎ Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, called for the vehicle purchase tax reduction policy to phase out gradually at 3% in 2026 and 7% in 2027, while simultaneously strengthening comprehensive measures to address market involution and reinforcing policy guidance and regulatory oversight.

◎ According to preliminary estimates from the CPCA, the retail market for narrow-definition passenger vehicles in October is expected to reach approximately 2.2 million units, a 2% decrease compared to the previous month. Among them, new-energy vehicle retail sales are forecasted at around 1.32 million units, with the penetration rate projected to rise to about 60%, potentially hitting a new all-time high.

◎ Bayi Steel: The company plans to invest in a new 3500mm pre-straightening machine project for its newly built rolling mill's medium- and thick-plate production line, with total investment not exceeding 35 million yuan.

◎ China Shenhua: Net profit for the third quarter reached 14.411 billion yuan, down 6.2% year-on-year; net profit for the first three quarters totaled 39.052 billion yuan, a 10% decrease compared to the same period last year.

◎ Hangzhou Municipal Housing Security and Housing Administration: Hangzhou's Fuyang District, Lin'an District, Tonglu County, Chun'an County, and Jiande City will soon launch a limited-time "Home Purchase + Consumption Voucher" subsidy program. Under eligible conditions, buyers can receive a 100,000-yuan consumption voucher for each property purchased.

◎ On October 25, China's major eastward coal transportation artery, the Daqin Railway, completed its autumn centralized maintenance, laying a solid foundation for ensuring stable electricity coal supplies this winter and next spring.