India-China Relations
India Urges China to Acknowledge Its Right to Counter Terrorism at SCO Meeting
At the Shanghai Cooperation Organisation meeting in Qingdao on June 28, 2025, India’s Defence Minister Rajnath Singh urged China to collaborate on a “permanent solution” to the border dispute through a structured roadmap. Singh emphasized the need to bridge trust deficits, de-escalate along the Line of Actual Control (LAC), and revitalize existing demarcation mechanisms. He also made clear India’s stance on defending itself against Pakistan-sponsored terrorism. China was cautioned against complicating bilateral ties further, while both sides were encouraged to adhere to previously agreed disengagement protocols and progress towards formal delimitation. Click here to read...
India Shares 4-Point Border Stability Plan with China at SCO Meet
At the Shanghai Cooperation Organisation Defence Ministers' Meeting in Qingdao, Defence Minister Rajnath Singh presented a four-point proposal to Chinese counterpart Admiral Dong Jun, aimed at maintaining peace along the Line of Actual Control (LAC) and achieving long-term border stability. The plan calls for: (1) strict adherence to the 2024 disengagement agreement, (2) sustained de-escalation efforts, (3) accelerated demarcation and delimitation of the border, and (4) rebuilding trust to foster regional cooperation. Rajnath Singh also raised concerns about Pakistan-sponsored terrorism. He declined to endorse the joint SCO declaration for omitting references to terrorism. The meeting marked the first high-level military dialogue since the 2024 disengagement at Demchok and Depsang. Click here to read...
Geopolitical and Diplomatic Developments
US and China Reach New Trade Agreement Amid Ongoing Tariff Disputes
The United States and China have announced a fresh trade agreement aimed at de-escalating tensions, though details remain sparse. President Donald Trump stated that a deal had been signed recently, while China’s Commerce Ministry confirmed a framework was agreed upon. U.S. Treasury Secretary Scott Bessent said China will ease exports of rare earth minerals crucial to U.S. industries, while the U.S. will lift certain restrictions. The agreement builds on previous deals made in Geneva and London to reduce tariffs, including the rollback of triple-digit levies. Despite this progress, key disputes on trade imbalances, tech export controls, and structural reforms remain unresolved. The temporary easing of U.S. global tariffs is set to expire July 8, though negotiations with other countries may continue into September. Separately, Trump announced a freeze on trade talks with Canada over its planned digital services tax. Click here to read...
China Rolls Over $3.4 Billion Loans to Pakistan Ahead of IMF Deadline
China has rolled over $3.4 billion in loans to Pakistan, according to senior Pakistani officials, providing critical support to help Islamabad meet the International Monetary Fund’s (IMF) foreign reserves requirement. The move includes $2.1 billion retained in Pakistan’s central bank reserves and the refinancing of a $1.3 billion commercial loan repaid earlier. Additionally, Pakistan received $1 billion from Middle Eastern banks and $500 million in multilateral financing. These inflows bring Pakistan’s reserves in line with the IMF's $14 billion target for the fiscal year ending June 30, 2025. Click here to read...
Military and Security Updates
China Removes Senior Military Official Miao Hua from Top Command Body Amid Corruption Probe
China’s top legislature has officially removed General Miao Hua from the Central Military Commission, the highest command body of the People's Liberation Army, amid an ongoing anti-corruption crackdown. Miao, 69, who was under investigation since November for “serious violations of discipline,” also lost his status as a national legislator. Once a close associate of President Xi Jinping from their time in Fujian, Miao had served as the PLA’s political ideology chief. Vice Admiral Li Hanjun was also stripped of his parliamentary status, and another top general, He Weidong, has not been seen in public since March, fuelling speculation about broader purges within the military. The move comes as part of Xi’s intensified efforts to root out corruption within China’s defense establishment. Click here to read...
China Unveils Possible Graphite Bomb Capable of Disabling Power Grids
China's state broadcaster CCTV released an animated video showcasing a potential new graphite bomb designed to knock out enemy power infrastructure. The weapon, launched from a land-based platform, disperses 90 submunitions that release fine carbon filaments mid-air to short-circuit high-voltage systems. With a 490kg warhead and a range of 290km, the bomb could disable power over a 10,000sq m area, targeting command and control systems. While not officially confirmed, the weapon’s traits match known graphite munitions. Analysts suggest it could be deployed in future conflicts, possibly against Taiwan, mirroring past U.S. use of similar weapons in Iraq and Serbia. Click here to read...
Economic and Trade Trends
China’s Factory Activity Shows Modest Rebound in June as US Trade Tensions Ease
China’s manufacturing sector showed signs of recovery in June 2025, with the official purchasing managers’ index (PMI) rising to 49.7 from 49.5 in May, amid easing trade tensions with the U.S. Although still in contractionary territory, the uptick marks the third consecutive month of improvement. New orders and export sub-indexes also rose, reflecting stronger demand. The non-manufacturing PMI climbed to 50.5. Analysts credit recent tariff reductions with stabilizing export momentum but caution that structural challenges, including a property slump and deflation, could weigh on the economy in the second half of the year. Click here to read...
Technology and Innovation
China’s AI Capital Spending to Reach Up to $98 Billion in 2025 Amid US Rivalry
China’s AI-related capital expenditure is projected to hit 600–700 billion yuan (US$84–98 billion) in 2025, according to a Bank of America report, marking up to 48% growth from 2024. Government spending will account for about US$56 billion, while major tech firms like Alibaba and Tencent will contribute around US$24 billion. The surge is fuelled by enthusiasm over low-cost AI breakthroughs from start-ups like DeepSeek, and China’s efforts to expand AI data centres and green energy infrastructure. The investments come as China races to compete with U.S. initiatives like the $500 billion Stargate Project and navigates trade restrictions on advanced chips. Click here to read...
Alibaba Launches New Image-Generating AI Model Qwen VLo
Alibaba has unveiled Qwen VLo, a new multimodal AI model capable of generating and editing images with advanced precision, supporting diverse inputs and multiple languages. The model is an upgrade from previous versions and is now available on Qwen Chat. Qwen VLo strengthens Alibaba’s position in China’s competitive AI sector, where firms like ByteDance and SenseTime are also advancing multimodal capabilities. Alibaba continues to promote open-source development, investing over US$52 billion in AI infrastructure. The company was named a leader in open-source AI by Time in 2025 and recently introduced AI tools for early cancer detection, including gastric and pancreatic cancers. Click here to read...
Internal Politics and Policy Shifts
CPC Membership Tops 100 Million as Grassroots Party Units Expand
The Communist Party of China (CPC) recorded over 100.27 million members by the end of 2024, an increase of nearly 1.09 million from the previous year, according to a report released ahead of the Party's 104th anniversary. The number of grassroots-level CPC organizations also rose, reaching 5.25 million, up by 74,000 from 2023, highlighting continued structural growth and organizational strengthening at the primary level. Click here to read...
