During his annual speech, President Xi Jinping emphasized the need to combat 'Taiwan independence' and called for national reunification, using stronger language than in previous years. This shift follows Xi's recent visit to Washington, where he urged President Trump to oppose Taiwan independence more explicitly, potentially altering the U.S. stance on the matter.
The timing of these remarks aligns with China's National Day holiday, which is expected to see significant travel activity, with projections of 2.13 billion trips during the week. However, despite the high volume of travel, consumer spending may not see a corresponding increase due to ongoing subdued demand.
The holiday is traditionally a barometer for domestic consumption, but past data indicates that while travel numbers have risen, they remain below pre-pandemic levels. In Hong Kong, authorities anticipate 7.4 million passenger trips, while Macau expects over 5 million, highlighting the regional movement during this festive period.
Overall, Xi's hardened stance on Taiwan, coupled with the holiday travel surge, underscores the complex interplay between domestic celebrations and geopolitical tensions