China Digest (16-22 June 2025)
Esha Banerji, Research Assistant, VIF

India-China Relations

Rajnath Singh to Attend SCO Defence Ministers’ Meeting in Qingdao

Defence Minister Rajnath Singh will travel to Qingdao, China, from June 25–27 to attend the Shanghai Cooperation Organisation Defence Ministers’ meeting. On the sidelines, he’ll hold bilateral talks with Chinese Defence Minister Admiral Dong and Russian counterpart Andrey Belousov. The visit coincides with the arrival of the first batch of Indian pilgrims for Kailash-Mansarovar since 2020, as part of a broader India-China “normalisation” agreed in October 2024. Rajnath Singh is also expected to engage with other SCO members - Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus - while discussions will cover defence cooperation and the SCO’s Regional Anti-Terror Structure amidst escalating Middle East tensions. Click here to read…

Geopolitical and Diplomatic Developments

Chinese Premier Li Qiang and New Zealand PM Christopher Luxon Hold Strategic Talks in Beijing

On June 20, 2025, Premier Li Qiang hosted New Zealand Prime Minister Christopher Luxon in Beijing. Li proposed aligning development strategies to leverage high economic complementarity, expanding trade liberalization and investment, and increasing China’s imports of New Zealand agricultural and food products. He also invited capable Chinese firms to invest in New Zealand and welcomed New Zealand as guest of honour at the 2025 China Annual Conference & Expo for International Education to boost exchanges in education, tourism, think tanks, and subnational collaboration. Luxon reaffirmed New Zealand’s one-China policy, pledged to enhance high-level exchanges, and to deepen cooperation on trade, agriculture, tourism, education, climate change, and green development. Click here to read…

China Strongly Condemns US Strikes on Iranian Nuclear Facilities, Calls for Ceasefire

China’s foreign ministry condemned the United States’ bombing of Iranian nuclear sites that are under International Atomic Energy Agency supervision and called the move as a serious violation of the UN Charter. The statement urged all parties, especially Israel, to cease fire immediately, ensure civilian safety, and begin dialogue. China pledged to work with the international community to uphold justice and restore peace and stability in the Middle East. Click here to read…

Military and Security Updates

China Slams UK Warship HMS Spey’s Taiwan Strait Transit as “Intentional Provocation”

China’s military slammed the passage of the British frigate HMS Spey through the Taiwan Strait (its first such transit by a UK vessel since 2021) as a disruptive “intentional provocation” that undermines regional peace and stability, accusing London of hyping the voyage and twisting legal principles. The Royal Navy, however, insisted the patrol was a routine, long-planned deployment fully in line with international law. This move was praised by Taiwan’s government as vital for safeguarding freedom of navigation. This development happened against the backdrop of a UK carrier strike group’s arrival for an eight-month Indo-Pacific deployment and rising cross-strait tensions fuelled by Taiwan’s recent anti-Beijing policies and China’s frequent military drills. Click here to read…

Chinese Official Media Releases Footage of J-15 Fighter Sorties from Liaoning to Expel Foreign Aircraft

On June 22, 2025, Chinese state media published footage showing J-15 fighter jets launching from the PLA Navy’s carrier Liaoning in the Western Pacific amid heavy rain and strong convection to intercept and expel four unidentified foreign aircraft believed to be simulating attacks on the carrier group; according to CCTV, the jets, armed with live missiles, executed emergency sorties and tactical manoeuvres under challenging visibility before driving off the intruders, with experts affirming the action as a legitimate, professionally conducted self-defence measure demonstrating the vessel’s all-weather operability and the crew’s high level of training and combat readiness. Click here to read…

Economic and Trade Trends

China Launches Official ‘Property Supermarkets’ to Bolster Flagging Housing Market

Amid a 24th consecutive monthly drop in home prices and persistently subdued buyer sentiment, Chinese authorities rolled out officially vetted “property supermarkets”- online and offline platforms in cities including Chengdu, Suzhou, Weihai and across Shandong province - that aggregate listings from nearly 30 state-owned and private developers, bundle services such as mortgage applications, tax support and registration, and aim to reduce information asymmetry and improve transaction efficiency. Analysts note that, while these centrally managed hubs may enhance transparency and trust, they are unlikely to replicate the immediate stimulus effects of mortgage-rate cuts or down-payment reductions against the backdrop of structural demographic headwinds and falling price expectations. Click here to read…

Surge in Chinese EV Imports Triggers Industry Pushback in Brazil

Brazil is facing mounting pressure from domestic industry and labour groups over a sharp rise in Chinese electric vehicle (EV) imports, led by automaker BYD. The influx, facilitated by Brazil's relatively low tariffs, has prompted calls to accelerate planned tariff increases to protect local manufacturing and jobs. BYD has pledged to build a factory in Bahia but production is delayed to late 2026. Chinese brands now account for over 80% of Brazil's EV market. Officials are reviewing requests to fast-track a tariff hike from 10% to 35%, originally scheduled for gradual implementation through 2026. Click here to read…

Technology and Innovation

China Develops Uncooled Two-Kilowatt Fibre Laser for Extreme Climates

Researchers at the National University of Defence Technology announced a two-kilowatt fibre laser capable of operating without heating or cooling systems across temperature ranges from –50 °C to 50 °C. The design uses 940 nm pump diodes with minimal thermal drift and locates pump combiners outside the resonator to protect heat-sensitive components. Ytterbium-doped fibre coiled at 8 cm diameters suppresses parasitic light waves. In lab tests simulating Arctic-to-Sahara conditions, the laser delivered over 2 kW output, peaking at 2.47 kW at 20 °C, with 71 % efficiency and near-perfect beam quality. The portable system contrasts with Europe’s HELMA-P and India’s IDDIS, which require container-sized cooling units for similar power. The breakthrough leverages China’s dominance in ytterbium reserves. The team plans further work to increase output power and broaden operating temperature ranges. Click here to read…

Internal Politics and Policy Shifts

Taiwan President Lai Asserts Sovereignty, Rejects China's Claims

Taiwan President Lai Ching-te declared that Taiwan is "of course" a country, rejecting China's sovereignty claims as lacking historical and legal basis. In the first of ten speeches aimed at "uniting the country," Lai highlighted Taiwan's distinct historical development and democratic governance. He criticized China's interpretation of the 1971 UN resolution and reiterated that only Taiwan's 23 million people can determine its future. China, which considers Lai a separatist, has increased military pressure around the island. Click here to read…

Former Head of Traditional Chinese Medicine Authority Under Corruption Probe

Yu Wenming, former director of China’s National Administration of Traditional Chinese Medicine, is under investigation for suspected corruption, according to the Central Commission for Discipline Inspection. Yu, 62, last appeared publicly in April as director of the Chinese Association of TCM. He rose to prominence during the COVID-19 pandemic for promoting TCM treatments and served as director of the national TCM body from 2018 to 2023. The probe is part of a wider crackdown on corruption in China's medical sector, which has already ensnared several other senior TCM officials. Click here to read…

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