India-China Relations
Ceasefire Collapses Within Hours: Pakistan Fires First, China Voices Support
Within hours of a newly announced ceasefire, Pakistan violated the agreement, prompting sharp responses from Indian officials over drone sightings in Jammu and Kashmir. In a swift diplomatic move, Pakistan's Foreign Minister Ishaq Dar held a phone call with Chinese Foreign Minister Wang Yi, briefing him on the regional situation. China reaffirmed its support for Pakistan, stating it would continue to stand by Islamabad in upholding its sovereignty and territorial integrity. The timing of China’s statement has drawn attention. Click here to read...
A Test for China-India Ties After Pakistan Credits J-10C in Kashmir Fight
Tensions in China-India relations are being tested following Pakistan’s claim that it used a Chinese-made J-10C fighter jet to shoot down Indian aircraft during a recent Kashmir conflict. While the two countries have made efforts to ease military tensions since October, the revelation of Chinese weapons involvement has raised suspicions in India, given Beijing's close ties with Islamabad. Although both nations reached a truce, China’s role in the India-Pakistan conflict remains sensitive, particularly with India’s strategic pivot toward the US. Despite the thaw in relations, the ongoing border issues and China’s influence in the region could potentially strain the slow-moving rapprochement between China and India. Click here to read...
Geopolitical and Diplomatic Developments
U.S.-China Tariff Truce Sparks Market Rally, 90-Day Reprieve Begins
The United States and China have agreed to a 90-day reduction in tariffs following talks in Switzerland. U.S. tariffs on Chinese goods will drop from 145% to 30%, while China will lower duties on U.S. imports from 125% to 10%. The announcement triggered a surge on Wall Street, with the S&P 500, Nasdaq, and Dow posting their biggest single-day gains in over a month. The Chinese e-commerce platforms Shein and Temu are expected to use the reprieve to bulk-ship goods and restock U.S. inventories. Despite market optimism, experts caution that a permanent resolution remains uncertain. Click here to read...
Brazil’s Lula in China as Beijing Criticizes 'Bullying' of Latin America
Brazilian President Luiz Inacio Lula da Silva arrived in China for a state visit and to attend a Latin American leaders' summit. The visit marks a step toward deepening ties between Brazil and China, Brazil's largest trading partner. Beijing also expressed opposition to "bullying" of Latin America and unilateral sanctions, voicing strong support for Cuba and Venezuela. Discussions on trade, agriculture, and infrastructure projects, including a railway linking Brazil to Peru, are expected during the visit. Click here to read...
Chinese Energy Investments in Africa Shift Toward Renewables, Report Finds
China’s energy investments in Africa are increasingly directed toward renewable projects, with solar and wind power now accounting for 59% of China’s energy projects on the continent. The ODI Global report highlights that between 2010 and 2024, China invested $66 billion in Africa’s energy sector. China’s dominance in solar panel production, where it manufactures over 80% of the global supply, is fuelling the growth of wind and solar technology exports to Africa, which surged 153% from 2020 to 2024. Africa’s rising energy demands and China’s cost-competitive technology are driving the shift toward cleaner energy, with countries like Kenya, Mozambique, and South Africa leading the way. Click here to read...
Military and Security Updates
China Hosts 100 African Military Officers to Strengthen Defence Ties
China is hosting a delegation of nearly 100 young and mid-career military officers from 40 African countries as part of its long-term strategy to deepen defence relations with Africa. The officers, from countries such as Egypt, Kenya, Mozambique, and Tanzania, will receive training on China’s military systems and technologies at top academies. This visit is part of China’s broader efforts to cultivate future military leadership in Africa and enhance bilateral military ties. The initiative aligns with President Xi Jinping’s pledge to train 6,000 African military personnel by 2027, reinforcing China’s geopolitical influence and countering Western dominance in Africa’s military landscape. Click here to read...
Economic and Trade Trends
China’s Property Market Is a Tale of Big Cities: Everywhere Else Is Struggling
China’s property market in 2025 is a contrast between thriving first-tier cities like Beijing, Shanghai, and Shenzhen, and struggling lower-tier cities. In major urban centres, government support and policies such as lower mortgage rates and eased restrictions have sparked a revival in home sales and land transactions. For example, Beijing saw new home sales increase by 125.6% in March 2025. However, smaller cities are facing challenges with oversupply, falling prices, and rising unsold inventories. In these areas, prices continue to decline, and recovery isn’t expected until at least 2026. The government has introduced measures to stabilize the market, but analysts suggest that smaller cities will require more time to overcome their structural economic issues. First-tier cities, by contrast, are seeing increased investor confidence and moderate price growth. Click here to read...
Five Chinese Authorities Announce Measures to Boost Finance for GBA Opening-Up
In a bid to further open up the financial sector in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), five Chinese authorities, including the central bank, announced a set of 30 measures on May 12, 2025. These guidelines aim to attract diversified investments, support Hong Kong and Macao investors in establishing securities and fund companies, and bolster cross-border yuan innovation. Key initiatives include enabling banks to settle yuan capital for qualified foreign firms and encouraging institutional openness in line with international standards. The guidelines also focus on improving financial services for innovation, advancing financial market interconnectivity, and supporting key industries like high-end manufacturing and digital sectors. These steps align with broader efforts to expand pilot programs for the services industry, including green financing and international investment. Click here to read...
Technology and Innovation
China Accelerates Development of AI Humanoid Robots with State Support
China is rapidly advancing its humanoid robotics sector, backed by over $20 billion in government funding and policy support. Firms like AgiBot, Unitree, and CASBOT are deploying AI-powered robots for manufacturing and elder care, amid labour shortages and economic restructuring. President Xi Jinping recently visited a key facility, signalling top-level backing. Local governments are offering incentives, and production costs are falling as domestic firms dominate component manufacturing. Click here to read...
China Issues National Guidelines to Integrate AI Education in Schools
On May 12, China’s Ministry of Education released two guidelines to promote AI education in primary and secondary schools. The documents aim to establish a structured AI curriculum focused on literacy and innovation, while restricting the use of generative AI by students and teachers. Primary students are barred from independently using open-ended AI tools, and teachers are prohibited from relying on AI for core teaching tasks or inputting sensitive data. The guidelines seek to build a secure, inclusive, and progressive AI education system nationwide. Click here to read...
‘Marsquakes’ Point to Liquid Water in Red Planet’s Crust, Study Finds
A new study reveals evidence of liquid water beneath Mars' surface, potentially just a few kilometres deep, based on seismic data collected by NASA’s InSight lander. Researchers, including a team from the Chinese Academy of Sciences, analysed seismic waves from “marsquakes” and meteorite impacts recorded between 2018 and 2022. They identified a zone in the Martian crust, 5.4 to 8 kilometres deep, that is best explained by water-saturated rock. If confirmed, this finding could reshape our understanding of Mars' water cycle and its potential for supporting habitable environments. However, the water is too deep for current drilling technology, and further studies are needed to confirm the discovery across other regions of Mars. Click here to read...
Internal Politics and Policy Shifts
Executive Yuan Webpage Edit Sparks Controversy of 'De-Han-ification'
A recent update to Taiwan's Executive Yuan webpage on ethnic groups has triggered controversy, with critics accusing the government of intentionally downplaying the Han Chinese majority in Taiwan. The revision, which removed a reference to Han Chinese as the largest ethnic group, now describes 96.2% of Taiwan's population as "the rest," without specifying their ethnicity. This change, which some see as an effort to diminish Taiwan’s connection to China, was criticized by the opposition Kuomintang (KMT), with legislators questioning the lack of clarity and transparency. Executive Yuan spokesperson Michelle Lee defended the update, explaining it was based on legal definitions and aimed at promoting equality, not political motives. Click here to read...
Key Readings & Reports
China Issues White Paper Outlining National Security Vision for the New Era
On May 12, China’s State Council Information Office released a white paper detailing its national security strategy in the new era. Structured in six sections, the document emphasizes a holistic approach to national security, aligned with Xi Jinping Thought, and highlights China’s focus on political stability, territorial integrity, and high-quality development. It promotes the Global Security Initiative and calls for improved global security governance. The paper reaffirms China’s commitment to reform, innovation, and safeguarding national interests while enhancing international understanding of its security framework. Click here to read...
US-China Joint Statement Following Geneva Meeting
On May 12, the U.S. and China issued a joint statement following economic and trade discussions in Geneva. Both sides agreed to suspend 24 percentage points of additional tariffs on each other’s goods for 90 days, while retaining a 10% base rate. They also committed to removing recent tariff hikes and non-tariff countermeasures imposed since April 2025. The statement establishes a bilateral mechanism for continued trade discussions, led by He Lifeng for China and Scott Bessent and Jamieson Greer for the U.S. Click here to read...
