China marked its National Day on Wednesday (October 1), with official messages from the ruling Communist Party and President Xi Jinping. It was on this day in 1949 that the People’s Republic of China was established as a communist nation, and the occasion saw the reiteration of some prominent themes, including “national rejuvenation”.On the same day, China unveiled a new category of visas for students in STEM (Science, Technology, Engineering and Mathematics) fields, intended to ease the pathway for job seekers. While the timing may have been coincidental, with the United States’ recently imposed high price tags on its H-1B visas, it comes as several high-profile figures in STEM have returned to China from abroad. A few media reports also indicated some domestic discontent over the move.On Tuesday, new data was released on domestic industrial activity, with the official manufacturing purchasing managers’ index reported at 49.8 in September. As the name suggests, it accounts for how firms’ purchasing managers view economic activity. Anything below 50 shows a contraction, and this was the sixth consecutive month in which the PMI shrank.In a much-awaited announcement for many in the business communities of both countries, China and India gave their go-ahead for the resumption of direct flights between the countries after five years. We detailed how the situation unfolded and what the move means for carriers and customers in this explainer.Here is a closer look at these developments:1. National Day celebrations harken back to key themesNational Day marks the establishment of the People’s Republic of China (PRC) on October 1, 1949, at the end of a years-long civil war between the Communist Party and the Nationalist Party (called the Kuomintang). Leaders of the Kuomintang fled to the island of Taiwan and formed their own government there, known as the Republic of China (ROC). Both governments claimed to be the real Chinese state and sought control over one another for decades. China continues to make these assertions over Taiwan.In China, the celebrations have historically highlighted not only the journey of the modern nation but also the significance of the Communist Party’s longevity. At the 70-year mark in 2019, a military parade was held in Beijing.UPSHOT: Xi’s official messages contained previously invoked themes, asking citizens to “forge ahead with determination in advancing Chinese modernisation”. It was in line with the view that foreign powers subjugated China in the 19th century, and the remedy of a national revival or rejuvenation, led, of course, by the Communist Party.Story continues below this adExplained | As Xi Jinping visits China’s Xinjiang, recalling the restive region’s modern historyXi also asserted that Beijing must firmly oppose “external interference”, in a reference to Taiwan. Given the history of the day, invocations of Taiwan were to be expected. Taiwan marks its national day this Friday, commemorating an uprising that was launched on October 10, 1911, to overthrow the Qing Dynasty, the last imperial Chinese dynasty.2. China eyes STEM talentIn last week’s tracker, we wrote about the announcement of a new category of “K” visas. It was aimed at STEM workers, allowing them to stay in China without requiring an employer to sponsor them.It was officially opened on October 1, but details are still scarce. However, multiple media reports indicated some dissatisfaction with the move in China. The BBC reported tens of thousands of comments on Chinese social media sites, with criticisms lamenting the unemployment among Chinese graduates, as well as some comments that were more racist in nature towards Indians in particular.UPSHOT: The messaging comes at a time when the long-established openness in the United States’ immigration policies is threatened. A commentary in the official party newspaper People’s Daily said as much without naming the US: “At a time when some countries are turning inward and excluding international talent, China has keenly seized this important opportunity and promptly introduced relevant policies.”Story continues below this adBut there are several hurdles in attracting foreign talent to China, including an opaque, authoritarian government system and a language barrier, even as Chinese universities now routinely feature at the top of global rankings. Despite the lack of concrete data, several estimates point to a reduction in foreigners in the country (for work and education) from around the Covid-19 era, and the numbers are yet to return to previous highs.It also comes amid another recent occurrence — some of the STEM talent returning to China. A CNN report recently estimated that “at least 85 rising and established scientists working in the US have joined Chinese research institutions full-time since the start of last year, with more than half making the move in 2025”.While it forms a minuscule share of the total number of Chinese immigrants abroad, it still reflects not just the uncertainty prevailing in the US, but the Chinese government’s intentions of doubling down on STEM fields.3. New PMI data show contraction, with caveatsThe Financial Times noted in its report that the consecutive contraction in the PMI began in April, the month in which US President Donald Trump announced his “Liberation Day” tariffs. However, this was also the strongest reading since March this year, and defied a Reuters estimate of 49.6, with the 49.8 reading.Story continues below this adA private survey, which covered a larger number of companies, showed some improvements, too, thanks to “Better underlying demand conditions, business promotional efforts and new product launches supported the latest upturn in overall new business,” according to Reuters.UPSHOT: The data follow other information on the state of the Chinese economy in recent weeks concerning consumption, pointing to the persistent issue of low demand. It is also in line with the view that the effects of US tariffs would actually manifest later in the year, as exporters and importers initially attempted to front-load their goods and fulfil existing orders.Alongside the worries over low domestic demand, the government has asked manufacturers to move away from offering their goods at extremely low prices, as it would eventually become unsustainable for them. It has long been speculated that a major stimulus package will be announced to boost demand, but the government still appears reluctant to utilise that tool.