Today’s headlines are dominated by ratcheting trade tensions between China and the US, as tit-for-tat port levies hit shipping. The two superpowers are set for trade talks at the end of the month.
US-China tensions
Fears that the US and China are heading for another trade war have risen, after ramped-up rhetoric and new port levies were introduced.
As of today (14 October), both countries have started charging higher port rates on one another’s ships. Bloomberg reports that South Korean shipping firm Hanwha Ocean’s shares immediately dipped over 5% after China targeted its five US units.
The country is set to play host to negotiations between the two nations at the end of the month.
Fighting talk
However, not long after announcing trade talks, US commerce secretary Scott Bessent criticised the Asian nation’s recent export controls in comments made to the FT.
He told the publication that China’s decision last week to impose new export curbs on rare earths and critical minerals demonstrated “how weak their economy is”.
“Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world. If they want to slow down the global economy, they will be hurt the most.”
The new export curbs tighten Beijing’s control over the world’s magnet supply chain, requiring any foreign firm exporting magnets containing trace amount of Chinese-sourced rare earths to gain China’s approval to do so. The measure mirrors US restrictions placed on semiconductors, which prevent third countries from exporting high-tech chips to China.
The new curbs prompted US President Donald Trump to threaten 100% tariffs at the end of last week. In response, China has maintained that it won’t bow to US pressure and criticised its port levies.
Speaking yesterday (13 October), a Chinese Commerce Ministry spokesperson said:
“China's position is consistent. If there's a fight, we'll fight to the end; if there's a talk, the door is open.
“The US cannot demand talks while simultaneously imposing new restrictive measures with threats and intimidation. This is not the right way to engage with China.”
UK Sanctions List
Firms navigating UK export controls will only need to refer to one sanctions list from Wednesday 28 January 2026, as the government confirmed the consolidation of its two sanctions lists this week.
Only the UK Sanctions List will be accessible to traders from that date. The Consolidated List of Asset Freeze Targets, which is published by the Office of Financial Sanctions Implementation (OFSI) will no longer be available.
In an update, the government advises traders to ensure that, by 28 January 2026, any systems that are currently using the OFSI list are instead configured to use data from the UK Sanctions List, and suggests making the switch as soon as possible.
The decision to combine the lists into one was taken in response to industry feedback that it would “remove duplication of effort and simplify checks”.
Airline supply chain inefficiencies
Flaws in aircraft supply chains could cost the airline industry US$11bn this year as well as undermine environmental targets, according to a recent report by the International Air Transport Association (IATA) and Oliver Wyman.
Supply chain challenges significantly inhibit the production of new aircraft, which lead to rising maintenance and fuel costs. Delays in production also threaten supply as capacity fails meet rising demand – a 10.4% rise in passengers was outstripped by only an 8.7% capacity increase last year.
IATA’s director general Willie Walsh said that, while there’s “no simple solution to resolving this problem… there are several actions that could provide some relief”.
“To start, opening the aftermarket would help by giving airlines greater choice and access to parts and services.
“In parallel, greater transparency on the state of the supply chain would give airlines the data they need to plan around blockages while helping [Original Equipment Manufacturers] OEMs to ease underlying bottlenecks.”
Elsewhere in the headlines
- The UK’s job market decline may be slowing as the ONS says that falling payroll numbers and vacancies are levelling off
- Amid another implementation delay for the EU’s landmark deforestation legislation, a report found that the world is falling significantly behind the global deforestation goals put in place at a 2021 conference on the issue
Yesterday in trade
- We looked ahead to the release of the World Economic Outlook report, set to be released today
- We also shared an opportunity for traders to participate in a Digital Trade Corridor pilot programme designed to support the movement towards electronic, over paper, trade documents
- There was news that the Dutch government seized control of Chinese-owned semiconductor firm Nexperia’s Netherlands operations
You can read those stories, and more, here.
