China Digest (9-15 June 2025)
Esha Banerji, Research Assistant, VIF

India-China Relations

India and China Agree to Rebuild Ties and Expedite Resumption of Direct Air Services

Foreign Secretary Vikram Misri and Chinese Vice Foreign Minister Sun Weidong met on June 12–13 in New Delhi to review recent developments in bilateral relations and agreed to stabilise and rebuild ties with a focus on people-centric engagements. Both sides committed to expediting the steps required to resume direct air services, updating their Air Services Agreement, and facilitating visas as well as media and think-tank exchanges. India welcomed China’s cooperation in restarting the Kailash Manasarovar Yatra and progress on hydrological data sharing under the Expert Level Mechanism for trans-border rivers. Sun Weidong also conveyed China’s condolences over the recent Ahmedabad air crash. Click here to read...

India and China Discuss Rare Earth Export Curbs and Plan Further Economic Dialogues

During talks in New Delhi on June 13, Foreign Secretary Vikram Misri and Chinese Vice Foreign Minister Sun Weidong addressed China’s export restrictions on rare earth magnets, which are delaying auto parts shipments and threatening India’s vehicle production. Both sides agreed to convene functional dialogues on critical mineral supplies and broader trade concerns. Indian automakers are preparing a delegation to Beijing to advocate for eased restrictions. Click here to read...

Geopolitical and Diplomatic Developments

China’s Wang Yi Decries ‘Unacceptable’ Israeli Strike on Iran, Urges Diplomacy

Chinese Foreign Minister Wang Yi condemned Israel’s attack on Iran as a breach of international law and called for immediate de-escalation. In separate calls with his Israeli counterpart Gideon Saar and Iranian counterpart Abbas Araghchi, Wang offered China’s constructive role in pursuing a peaceful settlement of the Iran nuclear issue. He warned that military action sets a dangerous precedent, urged both sides to return to dialogue, and stressed that diplomatic solutions remain viable. Wang emphasized preventing further regional turmoil and upholding UN Charter principles. Click here to read...

China Urges G7 to Cease ‘Manipulating’ China-Related Issues

Chinese Foreign Ministry spokesperson Lin Jian rebuked the G7 economies for “manipulating” China-related issues to serve their own agendas. Speaking ahead of the G7 summit in Canada, Lin accused the bloc of maintaining a Cold War mentality, interfering in other nations’ internal affairs, and undermining China’s development. He warned that such confrontational practices are “doomed to fail”. He said this while responding to the G7’s communique, which criticized China’s business practices and threatened action against Chinese financial institutions linked to Russia. Click here to read...

China-Africa Expo Concludes with $11.39 Billion in Deals

The fourth China-Africa Economic and Trade Expo in Changsha wrapped up on June 15 with 176 projects totalling $11.39 billion signed. This is a 45.8 percent increase in project count and 10.6 percent rise in deal value compared to 2023. Attendance at the main venue doubled to over 200,000 visitors, generating finalized and tentative agreements worth 2.5 billion yuan. A parallel heavy machinery expo in Xiangtan added 200 million yuan in tentative deals. The four-day event featured dedicated exhibitions for China-Africa cooperation brands, African goods, and fashion, with nearly 2,100 companies (764 from 43 African nations) and 12,000 purchasers participating. Over 200 African agricultural products were sold via online and retail channels, and 14 African countries hosted promotion activities. Click here to read...

Military and Security Updates

PLA Conducts South China Sea Patrols Amid Philippines–Japan Joint Drills

The PLA Southern Theatre Command carried out joint sea and air patrols in the South China Sea in response to a Philippine–Japan maritime exercise off of Luzon’s Masinloc. Spokesman Senior Colonel Tian Junli condemned the drills as external interference that “raises security risks” and vowed to remain on high alert to defend China’s territorial claims and maritime rights. The two-day “Maritime Cooperative Activity” follows the recent ratification of a reciprocal access agreement between Manila and Tokyo, and underscores deepening security cooperation between the Philippines and Japan in contested waters. Click here to read...

Economic and Trade Trends

China’s Factory Output Slows to Six-Month Low as Housing Declines Continue, Retail Sales Surge

Data for May showed China’s industrial output grew 5.8 percent year-on-year, its weakest pace since last November, while new-home prices across 70 major cities fell 0.22 percent and used-home values dropped 0.5 percent, further extending property-market challenges. In contrast, retail sales jumped 6.4 percent, driven by strong holiday spending, an early “618” online shopping festival, and government trade-in subsidies. Exports rose 4.8 percent overall, but shipments to the U.S. plunged 34.5 percent. The urban unemployment rate edged down to 5.0 percent, even as economists caution that high tariffs, waning fiscal support, and structural headwinds may keep growth subdued. Click here to read...

Technology and Innovation

China Breakthrough Extends Next-Gen LED Lifespan to Over 20 Years

Researchers from the University of Science and Technology of China, Fudan University, and Nanjing Tech University have developed perovskite LEDs (PeLEDs) with a theoretical lifespan exceeding 185,000 hours (over 21 years) at standard display brightness. By using weakly space-confined perovskite films prepared with hypophosphorous acid and ammonium chloride, the team achieved record luminance of 1.16 million nits and peak external quantum efficiency above 22 percent. The advance overcomes previous stability and efficiency barriers, paving the way for ultra-bright, energy-efficient lighting and display applications. Click here to read...

Internal Politics and Policy Shifts

Beijing’s Top Taiwan Official Warns Independence Forces Will Bring ‘Disaster’ to Island

At the Straits Forum in Xiamen, Wang Huning, China’s top official on Taiwan affairs, condemned Taiwan independence forces and external interference as threats to sovereignty and cross-Strait stability, warning that they would bring disaster to Taiwanese people. Wang called for opposition to separatism and closer integration, while Fujian officials pledged policies to enhance business and social ties with Taiwanese residents. Former Taiwanese leader Ma Ying-jeou, the first ex-president to attend the forum, urged uninterrupted exchanges to reduce misunderstandings and avoid conflict. Beijing reiterated plans for integrated development projects linking Fujian with the Kinmen and Matsu islands. Click here to read...

17th Straits Forum Opens in Xiamen with Over 7,000 Taiwanese Participants

The 17th Straits Forum kicked off on June 15 in Xiamen under the theme “expanding people-to-people exchanges and deepening integrated development,” featuring 56 activities in primary-level, youth, cultural, and economic fields. Over 7,000 attendees from Taiwan gathered to promote cross–Strait cooperation. Wang Huning, China’s top Taiwan affairs official, emphasized safeguarding peace, upholding the one-China principle and the 1992 Consensus, and opposing separatism. He pledged continued support for Taiwan compatriots and deeper integrated development. Former Taiwanese leader Ma Ying-jeou reaffirmed commitment to peaceful relations based on the 1992 Consensus. Click here to read...

Key Reports and Readings

SIPRI Yearbook 2025 on China

The 2025 Yearbook of the Stockholm International Peace Research Institute (SIPRI) warns that China’s nuclear stockpile is expanding more rapidly than any other country and could match the Intercontinental Ballistic Missile (ICBM) forces of the United States or Russia by the end of the decade. Since 2023, Beijing has been adding roughly 100 warheads per year, bringing its estimated total to at least 600, with projections for continued growth.

SIPRI highlights China’s construction of some 350 new ICBM silos across six fields, and its deployment of advanced missiles such as the MIRV-equipped DF-5 and DF-41. Depending on warhead loading (one per silo or three per silo under MIRV technology), China could field between 650 and over 1,200 ICBM-delivered warheads by 2030.

The report also notes China’s ongoing modernization of its sea-based deterrent, refurbishing Type 094 SSBNs and developing the next-generation Type 096 submarine, as well as strategic bomber capabilities. While its undersea fleet currently poses little threat to the U.S. mainland, it could target regional bases or Alaska and Hawaii in future.

Globally, SIPRI records some 12,241 nuclear warheads across nine nuclear-armed states, with China now joining a broader trend of arsenal growth after decades of reductions. Click here to read...

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