China Digest (13-18 May, 2025)

India-China Relations

China Accelerates Pakistan Dam Project Following India’s Indus Water Threat

China has announced the acceleration of the Mohmand Hydropower Project in Pakistan, a key dam under construction in Khyber Pakhtunkhwa province, amid rising India-Pakistan tensions. The move follows India’s recent threat to suspend the Indus Waters Treaty after a militant attack in Kashmir. Chinese state broadcaster CCTV reported that concrete filling has begun, marking a critical milestone in the project’s development. The dam, under construction since 2019 by the state-owned China Energy Engineering Corporation, is considered a flagship national project for Pakistan and is vital for its water and agricultural security. Click here to read... [2]

Geopolitical and Diplomatic Developments

China Welcomes U.S. Tariff Reduction as Boost to Bilateral Trade and Global Economic Recovery

China views the recent significant tariff reductions between Beijing and Washington as a positive development for bilateral trade and global economic recovery, according to National Bureau of Statistics (NBS) spokesperson Fu Linghui. Speaking at a press conference on Monday, Fu emphasized that despite ongoing global challenges, including rising protectionism and unilateralism, China remains committed to open trade and international cooperation. He highlighted that China’s efforts to diversify its foreign trade and implement supportive policies are showing continued results, contributing to stable trade growth. Click here to read... [3]

China Adopts Public-Private Partnerships to Fund Major Infrastructure Projects in Africa

China is shifting toward public-private partnerships (PPPs) to finance large infrastructure projects in Africa, aiming to reduce financial risk and alleviate debt burdens for partner countries. Under the new model, Chinese companies will fund construction in exchange for long-term operating rights, marking a departure from direct government lending under the Belt and Road Initiative. Projects like Kenya’s Standard Gauge Railway extension and Zambia’s Lusaka-Ndola dual carriageway illustrate this approach. The strategy allows China to maintain a strong infrastructure footprint in Africa while responding to growing concerns over debt sustainability. Click here to read... [4]

Military and Security Updates

J-10CE Fighter Jet Achieves Combat Success, Highlighted by Chinese Military Expert

China’s J-10CE fighter jet, developed for export, has reportedly achieved its first combat success by downing multiple enemy aircraft without losses, according to a China Central Television (CCTV) News report. Military affairs expert Zhang Xuefeng explained the aircraft’s advantages, including its multirole capabilities, superior manoeuvrability, advanced avionics, and integrated AESA radar with strong anti-jamming performance. The J-10CE also features stealth-enhancing design elements like a diverter-less supersonic inlet and radar-reducing canopy coating. The jet's ability to detect, track, and strike targets first gives it a competitive edge in beyond-visual-range engagements. Click here to read... [5]

Economic and Trade Trends

China’s Industrial Output Maintains Strong Growth in April Amid Economic Recovery

China’s industrial sector recorded stable growth in April, with value-added industrial output rising 6.1% year-on-year, according to the National Bureau of Statistics (NBS). Manufacturing output grew by 6.6%, while equipment and high-tech manufacturing increased by 9.8% and 10%, respectively. From January to April, overall industrial output rose 6.4% compared to the previous year. NBS spokesperson Fu Linghui noted that the sector is making solid progress in advanced, smart, and green transformation, supported by effective policy measures. April also saw a surge in the production of 3D printing equipment, industrial robots, and new energy vehicles. However, Fu highlighted operational challenges for some enterprises and stressed the need to boost domestic demand and innovation-led growth. Click here to read... [6]

China Imposes Up to 74.9% Anti-Dumping Duties on Plastics from U.S., EU, Japan, and Taiwan

China announced anti-dumping duties of up to 74.9% on imports of POM copolymers, an engineering plastic used in auto, electronics, and medical sectors, from the United States, European Union, Japan, and Taiwan. The decision concludes a probe launched in May 2024, following the U.S.'s tariff hikes on Chinese goods. U.S. imports face the highest duties, while EU and Japanese imports face 34.5% and 35.5% respectively, with exceptions for certain firms. Taiwanese firms received general duties of 32.6%, with lower rates for Formosa Plastics and Polyplastics Taiwan. Click here to read... [7]

Technology and Innovation

China Launches World’s First Commercial ‘Unhackable’ Quantum Cryptography System

China Telecom Quantum Group has introduced what it claims to be the world’s first commercial cryptography system resistant to quantum computing threats. The system integrates Quantum Key Distribution (QKD) and Post-Quantum Cryptography to form an end-to-end secure communication architecture. It successfully enabled a 1,000km quantum-encrypted phone call between Beijing and Hefei. The firm has deployed quantum networks across 16 major Chinese cities, with the Hefei network being the largest globally. China Telecom has also launched industry-ready platforms called Quantum Secret for secure messaging and Quantum Cloud Seal for administrative and enterprise use, marking a significant step in quantum-secure infrastructure. Click here to read... [8]

China to Launch Tianwen 2, Its First Asteroid Sample-Return Mission

China’s National Space Administration announced that the Tianwen 2 mission - China’s first attempt to retrieve samples from an asteroid - is set to launch within the next two weeks from the Xichang Satellite Launch Center. The robotic probe will target 2016 HO3, a quasi-moon of Earth, using a mechanical arm to collect surface dust before returning the samples to Earth. After completing this phase, the orbiter will continue its journey to the main-belt comet 311P for further scientific research. Tianwen 2 marks China's second interplanetary mission, following the successful Tianwen 1 Mars mission in 2020. Click here to read... [9]

Internal Politics and Policy Shifts

China’s Home Prices Stagnant in April Despite Policy Support

China’s new home prices remained flat in April, extending a nearly two-year trend of no growth, according to official data released Monday. Year-on-year, prices dropped 4%, a slight improvement from March’s 4.5% decline. Resale home prices also fell across all city tiers. Property investment declined by 10.3% and sales by floor area shrank 2.8% from January to April. Despite recent government measures including reduced mortgage costs and interest rate cuts, analysts noted that economic uncertainty and weak buyer confidence continue to weigh on the housing market. Authorities have pledged further support to stabilize the sector. Click here to read... [10]

China Reaffirms One-China Principle on Taiwan’s WHA Participation at Geneva Briefing

At a press briefing ahead of the 78th World Health Assembly (WHA) in Geneva, China reiterated its firm stance that Taiwan’s participation must adhere to the one-China principle, as outlined in UN General Assembly Resolution 2758 and WHA Resolution 25.1. Chinese officials, including Chen Xu, China’s permanent representative to the UN in Geneva, emphasized that most countries support this position and oppose Taiwan’s involvement. China criticized certain nations for politicizing the issue to contain its development, noting that Taiwan-related proposals have been rejected at the WHA for eight consecutive years. Click here to read... [11]