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NEWS IN CHINA

• China’s Foreign Trade Sees 3.5% Growth in First Seven Months of 2025: China’s foreign trade rose 3.5% year-on-year to 25.7 trillion yuan ($3.6 trillion) during the first seven months of 2025, according to data released by the General Administration of Customs (GAC) on August 7. The growth outpaced the 2.9% rate seen in the first half of the year, signaling stronger momentum in global trade engagement. Trade with ASEAN, the EU, Africa, and Central Asia showed notable increases, particularly with Africa (17.2%) and Central Asia (16.3%). High-tech product trade reached 5.1 trillion yuan, up 8.4%, and accounted for nearly half (45.4%) of total trade growth highlighting China’s continued push toward innovation-driven commerce. Private enterprises played a central role, contributing 57.1% of China’s total trade volume with a 7.4% year-on-year increase. Meanwhile, cities in the Guangdong-Hong Kong-Macao Greater Bay Area recorded cumulative trade of 50.67 trillion yuan since 2019. The report underlined China’s pivot toward green, sustainable development and the emergence of new quality productive forces revitalizing both traditional and emerging sectors.

• China’s 14th Five-Year Plan Spurs High-Level Opening Up and Global Economic Integration: As 2025 marks the final year of China’s 14th Five-Year Plan (2021–2025), China has made significant strides in deepening economic openness. The foreign investment negative list was cut from 93 to 29 items, and restrictions in manufacturing were fully lifted by November 2024. Key service sectors such as telecommunications and education are gradually opening, with pilot programs in cities like Beijing and Shanghai allowing foreign firms to enter value-added telecom markets. President Xi Jinping reaffirmed China’s commitment to high-standard opening up and global cooperation, pledging to expand institutional openness in rules, management, and standards. China’s alignment with global trade standards is evident in its active role in RCEP, offering tariff reductions and boosting trade with ASEAN, Japan, and Africa. Additionally, zero-tariff treatment for the least developed countries shows China’s evolving role as a proponent of inclusive globalization.

• China Successfully Tests Crewed Lunar Lander ‘Lanyue’ in Milestone for Moon Mission: China has successfully conducted a major landing and ascent test for its next-generation crewed lunar lander, Lanyue, marking a crucial step toward its ambitious manned moon mission. The test, held on August 6 at a dedicated site in Hebei Province, was the country’s first to simulate the extraterrestrial landing and takeoff of a human-rated spacecraft. According to the China Manned Space Agency (CMSA), the test verified critical systems including descent and ascent controls, engine shutdown during touchdown, and the integration of propulsion with guidance, navigation, and control (GNC) subsystems. The Lanyue spacecraft features two modules lunar and propulsion and is designed to carry two astronauts, a lunar rover, and scientific equipment between lunar orbit and the moon's surface. Post-landing, Lanyue will also serve as a habitable base, offering power, data relay, and life support, enabling longer missions. The successful test sparked pride and excitement across Chinese social media, with hashtags like #LanyueLunarTest and #ChinaMoonMission is trending widely.

• PBOC Injects 700 Billion Yuan via Outright Reverse Repo to Ease Liquidity Pressures: The People’s Bank of China (PBOC) launched a 700 billion yuan three-month outright reverse repurchase operation, aiming to maintain ample banking system liquidity amid peak fiscal tax payments and upcoming quarter-end pressures. Analysts note the move is part of a proactive strategy to smooth market funding needs and sustain a moderately accommodative monetary stance. The operation’s term covers the critical end-of-September assessment period, mitigating funding strain in advance. With 900 billion yuan in maturing reverse repos this month, industry observers believe the central bank may conduct a second buy-out reverse repo in August, possibly with a six-month term, to support bond issuance and address medium-term liquidity gaps. Since June, the PBOC has maintained net injections through outright reverse repos, signaling precision liquidity management. While short-term liquidity remains sufficient, marginal tightening risks persist. Policymakers may continue using tools like the MLF and reserve requirement ratio adjustments to stabilize expectations, promote credit growth, and support economic recovery in the second half of the year.

• China Launches Publicity Campaign to Honour Outstanding Officers: The Publicity Department of the CPC Central Committee and the Ministry of Public Security jointly launched the 2025 "Grassroots Police” campaign to recognize exemplary police officers at the grassroots level. The initiative, aligned with the “Guardians Under the Sun” campaign, aims to highlight 20 outstanding officers whose dedication and innovation have strengthened grassroots law enforcement. The campaign will unfold in four phases; deployment, recommendation, publicity, and in-depth study. Selection criteria include political integrity, dedication to public service, innovation, and significant contributions, with priority given to young officers and those working in western regions. The Ministry of Public Security emphasized a strategic media plan involving integrated platforms and community-level engagement to amplify the impact. Stories of the selected officers will be widely shared to inspire public admiration and strengthen the cultural presence of law-based policing. Since its inception in 2019, the campaign has honored 148 officers nationwide, establishing a strong model of service and sacrifice within China’s police force.

SOCIAL MEDIA CHATTER

• Rumors of Milk Powder Price Hikes Spark Online Outrage: On August 7, 2025, Chinese social media erupted with claims that domestic and international milk powder brands were increasing prices by 30 to 50 yuan per can, coinciding with the government's announcement of new childcare subsidies. The issue quickly trended on platforms like Weibo and Sina, triggering widespread public anger and calls for boycotts against brands allegedly profiting from family support measures. Several top dairy companies, including Yili Group, China Feihe, and Beingmate, swiftly responded. They denied any price hikes, labeling the claims as misinformation. Beingmate clarified via its investor platform that no price changes had occurred and urged the public not to spread rumours. Industry analysts supported these statements, citing market oversupply due to declining birth rates and fierce competition, which make price hikes unlikely. Independent surveys revealed that about 70% of maternal product stores reported stable prices. Netizens remained divided, some remained skeptical, while others appreciated the transparency. The debate highlighted both growing consumer sensitivity and the influence of online discourse on market perceptions.

INDIA WATCH

• Guancha Interview Highlights India's Strategic Challenge Amidst US Tariff Row: Chinese news agency Guancha conducted an interview with Liu Zongyi of the Shanghai Institutes for International Studies on US President Donald Trump’s executive order to impose an additional 25% tariff on Indian goods. The interview discussed the White House’s remarks citing India’s Russian oil imports as a national security threat. The interview, led by Liu Zongyi portrayed India as eager to negotiate from a position of strength but finding its leverage insufficient. The discussion highlighted how Trump’s demands from military alignment against China to market openings clashed with India’s red lines, especially in agriculture and oil trade. The discussion also noted that Modi’s potential visit to Tianjin for the SCO Summit could signal warming Sino-Indian ties, subtly undercutting US expectations. In conclusion, the tariffs were seen as coercive economic pressure undermining strategic autonomy, potentially accelerating New Delhi’s push for diversified partnerships beyond Washington’s orbit.

Prepared By

Lipun Kumar Sanbad

Lipun Kumar Sanbad, a postgraduate student of Politics and International Relations from Pondicherry University and a History and Political science graduate from University of Delhi. From the past three years working as a freelance researcher in the domain of global peace, conflict and security studies, and defence studies.