Tariffs & Trade War Latest

Chinese automakers' registrations in the UK rose to 519,424 vehicles between January and August 2026, capturing 28.1% market share, up from 12.9% in the same period in 2025. The best-selling Jaecoo 7, nicknamed the 'Temu Range Rover,' sold 10,814 units in September. UK Business Minister Jonathan Reynolds is considering matching the EU's up to 35.3% tariff on Chinese EVs to avoid Made in Europe barriers, with China warning of retaliatory measures.

This newsletter covers three key developments: (1) EU trade commissioner Šefčovič visits Beijing seeking voluntary hybrid car export curbs, which China has refused, while the PRC proposes a joint monitoring mechanism and price undertakings on EVs; (2) The Xi-Trump meeting yielded limited progress—the US is slowing aircraft-parts exports to China for leverage, and a WSJ report on Xi's need for rest during the visit has leaked, fueling succession speculation ahead of the Fifth Plenum; (3) Yuyuan Tantian outlines PRC's proposed AI/SI dialogue topics: joint risk classification standards, incident notification procedures, and embedding AI governance in broader US-China exchanges.

The Xi-Trump meetings produced a new framework describing US-China relations as a 'constructive strategic stability relationship based on respect, fairness, and reciprocity.' The two-month tariff extension pushes the November 10 deadline to January 10, 2027. The State Council executive meeting signaled potential Q4 stimulus including property market stabilization policies. Questions remain about whether Nvidia will receive licenses for more AI chips to China.