China Digest (26 May - 1 June, 2025)
Esha Banerji, Research Assistant, VIF
India-China Relations
Chinese Embassy Warns Citizens Against Travel to Nepal-India Border Amid Arrests

The Chinese Embassy in Nepal has issued an alert advising Chinese citizens to avoid traveling to the Nepal-India border area following multiple incidents of Chinese nationals being arrested by Indian border forces for alleged illegal entry. The embassy stated that despite repeated warnings, some individuals continued to visit the region and were subsequently detained.

Highlighting the open-border nature between Nepal and India, the embassy cautioned that Chinese citizens face serious legal consequences if they inadvertently cross into Indian territory without a visa. Such offenses in India can lead to imprisonment of 2-8 years without bail, along with fines. The embassy emphasized the risks and urged citizens to strictly avoid the border region and to contact consular authorities in case of emergency. Click here to read…

Geopolitical and Diplomatic Developments
Chinese General Rebukes U.S. Defence Chief Over ‘Groundless’ Accusations at Shangri-La Dialogue

At the 22nd Shangri-La Dialogue in Singapore, PLA Major General Hu Gangfeng rejected U.S. Defence Secretary Pete Hegseth’s claims that China is destabilizing the Asia-Pacific region. Hu criticized Hegseth’s remarks as “groundless accusations” aimed at inciting confrontation and undermining regional stability.

Hegseth had earlier warned of a potential PLA takeover of Taiwan and accused China of aggressive actions in the South China Sea. In response, Hu condemned the U.S. for promoting “exclusive and confrontational circles” and increasing military presence in the region, asserting that such actions threaten maritime security and sovereignty.

Separately, the Chinese embassy in Singapore criticized French President Emmanuel Macron for likening the Taiwan issue to Russia’s actions in Ukraine, calling the comparison unacceptable and reiterating that Taiwan is China’s internal affair. Click here to read…

China and Russia Reaffirm Joint Security Efforts Against Terrorism and Transnational Threats

China’s top security official, Chen Wenqing, concluded a visit to Moscow by pledging deeper law enforcement and security cooperation with Russia. Speaking alongside Russian Security Council Secretary Sergei Shoigu at the 10th China-Russia law enforcement and security cooperation meeting, Chen emphasized joint efforts to combat terrorism, separatism, extremism, and drug trafficking.

Chen stated that both countries are “fighting together” to safeguard sovereignty and national development. Shoigu echoed the sentiment, highlighting shared interests in regional and global stability.

During his visit, Chen also attended a major international security forum hosted by Russia, engaging with representatives from over 100 countries and calling for global cooperation in building a “world of universal security.” His trip followed Chinese President Xi Jinping’s attendance at Russia’s Victory Day parade earlier in May, underscoring continued China-Russia strategic alignment. Click here to read…

Military and Security Updates
China Integrates Aerial Refuelling into Pilot Training to Boost Combat Readiness

China’s PLA Air Force has begun incorporating aerial refuelling into its pilot training program to enhance combat readiness and expand long-range operational capabilities. State broadcaster CCTV reported that the Shijiazhuang Flight Academy has initiated refuelling drills using J-10 fighter jets and a YU-20 tanker, marking a strategic shift in early-stage pilot education.

This move, previously reserved for operational units, is now being integrated into training curricula to reduce the gap between graduation and deployment. The YU-20 tanker, capable of offloading up to 100 tonnes of fuel per sortie, enables extended flight range and endurance critical for modern warfare. The training includes realistic simulations and introduces high-difficulty scenarios coordinated with frontline units.

The shift comes amid streamlined pilot training and broader PLA modernization efforts, as the air force develops a globally capable, strategically mobile talent pool. The YU-20 also featured in China’s largest joint air exercise in Africa with Egypt earlier this year. Click here to read…

Economic and Trade Trends
Chinese Economist Warns Financial Sanctions Could Emerge as Next Front in US-China Rivalry

Lian Ping, chairman of the China Chief Economists Forum, has warned that financial sanctions could become a new battleground in escalating US-China tensions. While full-scale measures such as cutting China off from the SWIFT system or freezing US dollar assets remain unlikely, Lian cautioned that targeted sanctions could gradually expand, with potentially serious consequences for the global financial system.

Lian emphasized that excluding China from SWIFT or freezing its vast dollar reserves would also harm U.S. credibility and global trust in the dollar, especially in light of growing concerns over U.S. debt levels. He noted that such actions could accelerate de-dollarization and push countries toward China’s Cross-border Interbank Payment System (CIPS).

Citing the precedent of sanctions on Russia, Lian warned of the risk of the U.S. provoking regional conflicts, such as in the Taiwan Strait, to justify freezing Chinese assets. He urged preparations including yuan internationalization, financial market reforms, and strategic adjustments in U.S. debt and asset holdings to create leverage against potential sanctions. Click here to read…

Technology and Innovation
China Launches 2030 Metrology Action Plan to Advance Chips, Quantum Tech Amid US Tech Rivalry

China has unveiled a 2030 action plan aimed at achieving major breakthroughs in metrology as part of its strategy to strengthen domestic capabilities in semiconductors, quantum technologies, and rare earths. Released by the State Administration for Market Regulation, the plan targets over 50 core technologies and seeks to address critical gaps in China’s measurement infrastructure, which is foundational to high-tech manufacturing and innovation.

Key areas include chip-scale metrology, nanoscale circuit measurement, quantum sensing devices, and metrology applications for rare earth magnets. The initiative also supports advancements in AI, robotics, environmental monitoring, and national security. The plan responds to escalating tech competition with the U.S., where export controls and the CHIPS and Science Act have intensified focus on precision measurement as a strategic domain. China’s roadmap calls for building metrology benchmarks, fostering industrial collaboration, and enhancing national scientific platforms by 2030. Click here to read…

China Unveils Home-Grown Robotics Operating System to Support Domestic Chips

China’s Kyland Technology has launched the Intewell operating system, a domestically developed platform designed for embodied intelligent robots, marking what state media describes as a “major breakthrough” in robotics software. The OS integrates multiple stages of robotic functionality, from chip-level deployment to application development, and is aimed at promoting the use of Chinese-made semiconductors.

Intewell supports chips from local tech firms such as Huawei, Hygon, and Loongson, aligning with Beijing’s push for technological self-sufficiency amid rising tensions with the U.S. While prioritizing domestic chips, the system remains compatible with international architectures including Nvidia, Intel, Qualcomm, Arm, x86, and RISC-V.

The launch coincides with rapid growth in China’s robotics sector, where multiple start-ups are shifting to mass production. Kyland’s initiative seeks to address the lack of a unified AI framework in China’s humanoid robotics industry, furthering efforts to develop end-to-end AI systems based on domestic technology. Click here to read…

Internal Politics and Policy Shifts
Global Delegates Convene in Dunhuang for Fourth Dialogue on Civilizations

Over 400 representatives from 60 countries gathered in Dunhuang, Northwest China’s Gansu Province, for the Fourth Dialogue on Exchanges and Mutual Learning Among Civilizations, held from May 30. The event emphasized intercultural dialogue, mutual respect, and cooperation to address shared global challenges, while preserving cultural heritage in the face of modernization.

Organized by the Chinese Association for International Understanding and the Gansu provincial government, the forum focused on the theme: “Carrying Forward the Silk Road Spirit to Gather Momentum for the Implementation of the Global Civilization Initiative.” Participants included political leaders, NGO heads, Sinologists, scholars, and cultural figures from across Asia, Europe, Africa, and the Americas.

Sessions covered literature, museum collaboration, the Digital Silk Road, AI, youth dialogue, and shared human values. Delegates also visited Dunhuang’s historical sites, including the Mogao Caves and Mingsha Mountain. Speakers praised the city’s role in historic East-West cultural exchange and called for drawing on the Silk Road legacy to foster peace, understanding, and cultural renewal. Click here to read…

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