As Wall Street’s rally shows signs of fatigue and gold loses its shine, global attention is increasingly drawn to China’s economic slowdown. Despite not being in a state of collapse, China’s 4.8% growth rate in the third quarter of 2025—the slowest this year—has raised red flags worldwide. External demand has kept China on track to meet its 5% annual growth target, but mounting trade tensions, including a threatened 130% U.S. tariff, have positioned China as a significant downside risk to U.S. economic growth. Stephen Miran, a Federal Reserve governor, has expressed concerns about China’s potential use of its rare earths monopoly as a retaliatory measure against U.S. tariffs, urging policymakers to consider new tail risks. Miran advocates for a 125 basis point rate cut to mitigate economic vulnerabilities. Meanwhile, global debt has surged to a record $337.7 trillion, with China, the U.S., and other major economies contributing significantly to this increase. The Institute of International Finance (IIF) warns that rising military spending and geopolitical tensions will further strain government finances. In the Eurozone, industrial production has weakened, and Japan faces challenges from trade uncertainties and domestic demand stagnation. China’s ambitious 5% growth target is increasingly threatened by U.S. tariffs, prompting calls for urgent fiscal stimulus and measures to boost domestic consumption. As Chinese Communist Party officials gather for the Fourth Plenum, the focus is on devising strategies to transition China into higher-value-added industries and strengthen social safety nets to encourage spending. The global economic outlook remains fraught with risks, with policymakers worldwide bracing for potential shocks as 2026 approaches.