CHINA: IT OPPOSES WEAPONISATION AND BATTLEFIELDISATION OF OUTER SPACE; IT OPPOSES OFFENSIVE MILITARY POLICIES IN OUTER SPACE, CALLS FOR PREVENTING ARMS RACE IN OUTER SPACE - XINHUA

China has publicly stated its opposition to the weaponisation and battlefield use of outer space, rejecting offensive military policies there and calling for measures to prevent an arms race in space, according to a Xinhua report. The statement is a policy position rather than a discrete economic action, so its direct market transmission runs mainly through geopolitical risk premia and sentiment toward Chinese equities and the broader Asia-Pacific region, where US-China strategic competition is a persistent valuation factor. Chinese space-related and defence-linked shares, including satellite communications, launch services, and aerospace suppliers, are the most directly exposed, as their valuations can move on perceived shifts in military spending, export controls, or international space governance. Investors typically treat such diplomatic messaging as low-impact unless it signals concrete changes in regulation or sanctions, so traders will look to whether Beijing follows this stance with binding proposals at UN disarmament forums or with changes to the country's space-sector policy. The next concrete catalyst is the UN Conference on Disarmament session and any associated vote or

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