China Digest (31 March-6 April 2025)

India-China Relations

India-China Mark 75 Years of Diplomatic Ties with Calls for Stability and Cooperation

On the 75th anniversary of India-China diplomatic relations, Presidents Draupadi Murmu and Xi Jinping exchanged congratulatory messages, emphasizing the need for mutual trust, cooperation, and peaceful coexistence. Xi highlighted the potential for a "Dragon-Elephant Tango" to advance both nations' modernization efforts, while Murmu stressed that a stable and friendly relationship would benefit the world. Chinese Premier Li Qiang and Indian Prime Minister Narendra Modi echoed similar sentiments, acknowledging the significance of their historical ties and advocating for enhanced collaboration and boundary management. Both sides reaffirmed their commitment to fostering a multi-polar world and strengthening bilateral relations for regional and global stability. Click here to read… [2]

Path Forward May Be Difficult, But We Are Prepared to Walk: Foreign Secy on India-China Ties

Chinese Premier Li Qiang and Indian Prime Minister Narendra Modi exchanged messages, highlighting the importance of stable bilateral ties. Foreign Secretary Vikram Misri attended a commemorative event at the Chinese Embassy in New Delhi, the first such attendance by an Indian Foreign Secretary since 2019. Misri stated that while the path forward may be difficult, both sides are prepared to work towards stability. The messages come amid ongoing efforts to resolve border tensions and ahead of a potential Modi-Xi meeting at the Shanghai Cooperation Organisation summit in Tianjin later this year. Click here to read… [3]

Geopolitical and Diplomatic Developments

Xi, Bangladesh Interim Chief Adviser Yunus Discuss Strengthening Bilateral Ties

Chinese President Xi Jinping met with Bangladeshi interim government's Chief Adviser Muhammad Yunus in Beijing. Xi stated that China and Bangladesh have a long history of friendly exchanges and reaffirmed China's commitment to stable and cooperative relations. He emphasized deepening political trust, expanding Belt and Road cooperation, and strengthening ties in various sectors, including the digital economy, infrastructure, and people-to-people exchanges. Yunus reiterated Bangladesh’s adherence to the one-China principle, welcomed Chinese investment, and expressed support for enhanced bilateral cooperation. Click here to read… [4]

Trump Administration Faces Lawsuit Over Chinese Import Tariffs

The New Civil Liberties Alliance, a conservative legal group, filed a lawsuit on April 4 in a Florida federal court challenging Donald Trump's new tariffs on Chinese imports. The suit argues that Trump exceeded his legal authority by imposing the tariffs under the International Emergency Economic Powers Act. Filed on behalf of Florida-based retailer Simplified, the lawsuit seeks to block the tariffs and reverse changes to the U.S. tariff schedule. The White House has not yet responded to the lawsuit. Click here to read… [5]

Military and Security Updates

PLA Conducts "Strait Thunder-2025A" Exercises in Taiwan Strait

The Chinese People's Liberation Army (PLA) Eastern Theatre Command conducted military exercises, code-named "Strait Thunder-2025A," in the middle and southern areas of the Taiwan Strait. The drills focused on identification and verification, warning and expulsion, and interception and detention. According to spokesperson Senior Colonel Shi Yi, the exercises aimed to test the troops' capabilities in area regulation, joint blockade and control, and precision strikes on key targets. Click here to read… [6]

China, U.S. Hold Military Maritime Consultative Agreement Working Group Meeting in Shanghai

The Chinese and U.S. militaries convened the 2025 China-U.S. Military Maritime Consultative Agreement working group meeting in Shanghai on April 2-3. According to the Chinese navy, both sides engaged in candid and constructive exchanges on maritime and aerial security developments since the last meeting, emphasizing equality and respect in discussions. Click here to read… [7]

Economic and Trade Trends

Chinese EV Makers Surge Ahead with Strong Q1 Sales, Boosted by Subsidies

Leading Chinese electric vehicle (EV) manufacturers, including BYD, Xpeng, and Zeekr, reported significant sales growth in the first quarter of 2025, fuelled by government subsidies and tax incentives. Xpeng saw the highest surge, with a 330.8% increase in deliveries, reaching 94,008 units. BYD’s sales rose 59.8% to over 1 million vehicles, while Zeekr saw a 21.1% increase to 114,011 units. Industry experts predict EVs will account for 56% of China's auto market, as electric and hybrid vehicles continue to outpace petrol-powered cars. Click here to read… [8]

China Open to Talks with U.S. on Economic and Trade Issues

China's Ministry of Commerce stated on April 3 that China is willing to engage in discussions with the United States on key economic and trade matters through equal dialogue and consultations. Spokesperson He Yadong noted that Chinese Vice Premier He Lifeng held video talks with U.S. Trade Representative Jamieson Greer on March 26 at the request of the U.S. side. Economic and trade departments from both countries remain in communication. Click here to read… [9]

China Imposes 34% Tariff on U.S. Goods in Retaliation for Trump’s Trade Move

China announced a 34% tariff on American imports, effective April 10, in response to the U.S. imposing similar levies on Chinese goods. The move, confirmed by the State Council, follows condemnation from China's Ministry of Commerce, which called the U.S. action “unilateral bullying.” Beijing also introduced export controls on 16 American companies, suspended export eligibility for six U.S.-linked firms, and plans further restrictions on rare earth mineral exports. The retaliatory measures come amid U.S. President Donald Trump’s comments suggesting potential negotiations tied to the sale of TikTok. Click here to read… [10]

Technology and Innovation

China Successfully Launches Test Satellite for Satellite Internet Technology

China launched a test satellite for satellite internet technology from the Jiuquan Satellite Launch Centre on April 1, 2025, at 12:00 p.m. (Beijing Time). Carried by a Long March-2D rocket, the satellite successfully entered its planned orbit. It will be used for technical verification and experiments, including mobile-to-satellite broadband connections and space-ground network integration. This marks the 567th mission of the Long March series carrier rockets. Click here to read… [11]

China Successfully Launches Tianping-3A 02 Satellite

China launched the Tianping-3A 02 satellite on April 3 from the Taiyuan Satellite Launch Centre in Shanxi Province. Carried by a Long March-6 rocket, the satellite entered its preset orbit at 10:12 a.m. Beijing Time. It will be used for radar calibration, imaging experiments, and space environment monitoring. This marks the 568th flight mission of the Long March carrier rocket series. Click here to read… [12]

Internal Politics and Policy Shifts

China Rejects U.S. "Hong Kong Policy Act Report," Condemns Sanctions

China strongly opposed the U.S. "Hong Kong Policy Act Report" and related sanctions on officials from the Chinese central government and Hong Kong SAR. A spokesperson for the Hong Kong and Macao Affairs Office condemned the report for smearing Hong Kong's national security laws and dismissed it as "waste paper." The spokesperson criticized U.S. actions as interference in China's internal affairs and an infringement on Hong Kong’s judicial independence. China reaffirmed its commitment to safeguarding national security and Hong Kong’s stability, emphasizing continued global confidence in the city's economic environment. Click here to read… [13]

Mainland Taiwan Affairs Official Meets with KMT Vice Chairman

Song Tao, head of China's Taiwan Affairs Office, met with Kuomintang (KMT) Vice Chairman Andrew Hsia in Xuzhou, Jiangsu Province, on April 2. Song reaffirmed the one-China principle and opposition to "Taiwan independence," stating that separatist actions would face consequences. Hsia reiterated the KMT's stance on maintaining cross-Strait stability under the 1992 Consensus and expressed willingness to promote peaceful relations. Click here to read… [14]

Key Readings & Reports

U.S. Intelligence Community Releases 2025 Annual Threat Assessment

The U.S. Intelligence Community released its 2025 Annual Threat Assessment on March 25, evaluating a range of threats to the United States. The report identifies China, Russia, Iran, and North Korea as key state adversaries challenging U.S. global influence through economic, military, and cyber strategies. It also highlights nonstate threats, including terrorist and transnational criminal organizations, with cartels playing a role in synthetic opioid-related deaths and illegal migration. The assessment warns of adversaries possessing weapons capable of striking U.S. territory or disabling critical infrastructure. Additionally, growing cooperation among U.S. rivals is increasing global tensions and pressuring other nations to choose sides. The report was prepared by the National Intelligence Council in coordination with multiple intelligence and government agencies. Click here to read… [15]