Prof G Markets China-U.S. Tensions Flare in Volatile Trading Day & Why Big Bank Profits Spooked the Market
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Oct 15, 2025 
Alice Han, a China economist at Greenmantle and co-host of China Decode, discusses rising U.S.-China trade tensions, explaining key tariff moves and miscalculations in China's export controls. She also touches on how these developments might impact TikTok and future tech restrictions. Telis Demos, co-host of The Wall Street Journal's Take on the Week, analyzes big bank earnings, emphasizing their impressive performance driven by diversified revenue and affluent consumers. He warns, however, about potential market uncertainties despite record profits.
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US-China Actions Reignited Market Volatility
- Recent U.S.-China actions (port fees, export rules, soybean halts) rapidly reignited market volatility.
- Both sides misread each other's strength, making deals much harder and markets more unstable.
Rare-Earth Moves Shift US Policy Toward Hawkishness
- China miscalculated expanding export controls on rare earths and then tried to walk it back with licensing language.
- The episode strengthened hawks in Washington and showed how quickly U.S. policy can shift to a tougher stance.
Narrative Push: China As Supply-Chain Threat
- Washington is pushing a narrative that China is weaponizing critical minerals to sway allies like Europe and Japan.
- Scott Bessant's public comments serve both diplomacy and a domestic show-of-toughness ahead of 2026 politics.