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China Hardens Military Stance Against U.S. With Nuclear Weapons and Tough Talk

by Team Lumida
September 18, 2025
in Macro
Reading Time: 3 mins read
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China’s Central Bank Embraces Hedge Fund Tactics to Tame $4 Trillion Bond Market

"China's flag" by futureatlas.com is licensed under CC BY 2.0

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Key Takeaways

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  • China displayed its full nuclear triad for the first time at a September 3 military parade, signaling a shift from downplaying to showcasing military might
  • Defense Minister Dong Jun warned U.S. Secretary Pete Hegseth that “acts of containment or deterrence against China will not succeed”
  • China’s nuclear warhead stockpile has more than doubled since 2020 according to Pentagon estimates, alongside expanded delivery capabilities
  • The newest aircraft carrier Fujian sailed through Taiwan Strait en route to South China Sea, demonstrating power projection capabilities
  • Beijing hosted the Xiangshan Forum with 100+ countries to promote its vision of a new international order with greater Chinese influence
  • Xi Jinping dropped previous promises that China “will never seek hegemony or expansion,” instead calling to “speed up building a world-class military”
  • China’s confidence stems from deepening partnerships with Russia and North Korea, whose leaders attended the military parade as guests of honor

What Happened?

China abandoned its traditional approach of downplaying military capabilities, launching a coordinated campaign of firepower displays and aggressive rhetoric targeting the U.S. The shift includes showcasing nuclear weapons, territorial assertions over Taiwan, and hosting international forums to promote an alternative global order with Beijing at the center.

Why It Matters?

China’s military posturing signals preparation for prolonged rivalry with the U.S. and reflects growing confidence in its ability to challenge American hegemony. The nuclear buildup and alliance with Russia/North Korea create new strategic risks for global stability. This hardened stance could complicate ongoing trade negotiations and increase the likelihood of military confrontation over Taiwan or South China Sea disputes.

What’s Next?

Monitor the potential Trump-Xi meeting in coming weeks and whether military tensions affect trade negotiations. Watch for U.S. military responses to Chinese provocations and alliance strengthening in the Indo-Pacific. Investors should assess defense spending implications and geopolitical risks to supply chains, particularly in semiconductor and technology sectors vulnerable to US-China conflict.

Source
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Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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