China: weekly briefing
28 Oct – 4 Nov 2026
Top stories
- Fifth Plenum confirms record expulsions and sets 2027 party congress (NBC News, 29 Oct) — China's Communist Party confirmed 33 expulsions, including former Politburo members, and elevated General Zhang Shengmin to the Politburo. Over a quarter of the Central Committee cohort was absent, according to NBC News.
- China's AI stock sell-off wipes about $480 billion from markets (YourStory, 28 Oct) — Citing a Reuters report, YourStory said the mainland STAR50 index has fallen 40% in under four months. Analysts cited stretched valuations and concerns over US restrictions, though the STAR50 still trades near 100 times trailing earnings.
- China steps up Middle East diplomacy amid US-Israel war on Iran (Al Jazeera, 2 Nov) — Wang Yi told an Iranian security official that dialogue is the only viable path, while Xi hosted Oman's sultan. China's envoy will visit Iran, Oman and Saudi Arabia this month, Al Jazeera reported.
- Kremlin says Putin-Trump-Xi trilateral summit under discussion (The Moscow Times, 3 Nov) — Kremlin spokesman Dmitry Peskov said talks are under way to organise a meeting in China, possibly around the APEC summit in Shenzhen. China's Foreign Ministry has not confirmed a meeting with Trump, The Moscow Times reported.
- China accuses Philippine politicians of intolerable conduct as tensions rise (South China Morning Post, 4 Nov) — Foreign Minister Wang Yi criticised a handful of Philippine politicians during a call with his Philippine counterpart, describing their conduct as intolerable. Philippine groups have called for de-escalation, South China Morning Post reported.
Trends
This week's stories show China managing pressure on several fronts. Domestic market strain is visible in the AI stock sell-off, which extends the economic stress noted last week, though coverage now centres on investor losses rather than export pushes. Politically, the Fifth Plenum's record expulsions and new cadre rules point to internal consolidation, a story that stands apart from the economic narrative. Diplomatically, Beijing is pressing for a larger role, stepping up Middle East diplomacy and taking part in talks on a possible Putin-Trump-Xi meeting. Tensions with Manila have re-escalated after fading last week. The EU trade and yuan friction seen previously does not feature this week, so the trade thread has softened. Tech decoupling persists through the reported Nvidia spy claim, which Beijing rejects.
What it means (opinion)
Opinion: The week suggests Beijing is juggling a weakening equity market, a leadership reshuffle and a more assertive foreign policy. The AI sell-off tests whether domestic investors will keep backing Beijing's technology push, and with the STAR50 still near 100 times earnings, further falls are plausible. Political consolidation ahead of the 2027 party congress may centralise decision-making, though its effect on economic policy is unclear. Diplomatically, China's bid to be seen as a broker in the Iran conflict, and its possible role in a Shenzhen summit, could raise its profile at a time of domestic strain. Next week, watch whether the planned Trump-Xi meeting proceeds, whether Manila's de-escalation calls gain traction, and whether equity losses spread beyond the AI sector.
AI-assisted summary of public reporting; the analysis is opinion. Sources are linked above.