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NEWS IN CHINA

• China and Switzerland Conclude Talks on Upgraded Free Trade Agreement: China and Switzerland have concluded negotiations on an upgraded free trade agreement (FTA) and signed a memorandum of understanding. The development followed talks in Bern between Chinese Commerce Minister Wang Wentao and Swiss Federal President and Minister for Economic Affairs, Education and Research Guy Parmelin. The upgraded agreement is expected to expand market access in areas including goods, services, investment and trade rules, creating new opportunities for bilateral economic cooperation. Wang said the agreement reflects both countries’ support for free trade and their efforts to promote greater economic certainty amid global uncertainties. He added that China’s Ministry of Commerce would work with Switzerland to complete the formal signing and implementation process. Parmelin said Switzerland’s government and business community attach importance to economic and trade cooperation with China and expressed readiness to use the upgraded FTA to expand trade and investment, deepen innovation cooperation, and maintain an open business environment for Chinese companies. The original China-Switzerland FTA was signed in 2013 and entered into force in 2014, becoming China’s first FTA with a continental European country. Both sides will now undertake domestic procedures before formally signing the upgraded agreement.
  
  
• China and El Salvador Seek to Deepen Legislative Cooperation: Zhao Leji, chairman of the Standing Committee of China’s National People’s Congress (NPC), held talks with Ernesto Castro, president of El Salvador’s Legislative Assembly, in Beijing. The meeting coincided with the eighth anniversary of the establishment of diplomatic relations between China and El Salvador. Zhao emphasised that China is ready to implement the consensus reached by the two heads of state and further advance bilateral relations. He called for deeper political mutual trust, noting China’s appreciation of El Salvador’s adherence to the one-China principle and support for China’s positions on Taiwan and human rights. Zhao also urged greater cooperation in education, culture, media and other areas, alongside stronger coordination in multilateral affairs. He further added that the NPC would strengthen exchanges with El Salvador’s Legislative Assembly through special committees, friendship groups and legislators, while sharing experiences on rule of law, poverty reduction and development. Castro underscored that closer relations with China are important for El Salvador and expressed his assembly’s readiness to enhance exchanges with the NPC to promote mutual learning, strengthen bilateral ties and advance practical cooperation.
  
  
• China Upgrades Fiscal and Financial Policies to Boost Domestic Demand: China’s Ministry of Finance, People’s Bank of China and General Administration of Financial Supervision issued a notice outlining upgraded fiscal and financial coordination policies to boost domestic demand. The measures, effective from August 1, expand the scope of interest subsidies, increase the number of eligible financial institutions and raise subsidy limits. The revised policy extends loan interest subsidies for small, medium and micro enterprises to newly issued working-capital loans and includes credit-card instalment spending such as vehicle purchases and home renovations. The number of eligible lending institutions will rise from about 100 to 400. Loan limits for small and medium-sized enterprises and service-sector businesses will increase from 50 million yuan to 75 million yuan and from 10 million yuan to 20 million yuan, respectively. The maximum interest subsidy for personal consumer loans will also rise from 3,000 yuan to 5,000 yuan. Since January, six policy tools have supported more than 20 trillion yuan in new credit, 1.51 trillion yuan in private investment and 1.88 trillion yuan in household consumption. Officials said the measures have benefited 6.22 million enterprises and 113 million residents.
  
  
• MIIT Approves First Private-Sector Satellite IoT Commercial Trial: China has approved its first private-sector commercial trial for satellite Internet of Things (IoT) services, granting a two-year permit to Zhejiang Geespace Technology, the commercial space subsidiary of Geely. The approval by the Ministry of Industry and Information Technology (MIIT) is part of broader efforts to expand private-sector participation in China’s commercial space industry. Geespace will provide low-power and wide-coverage satellite connectivity for applications including smart transportation, marine fisheries, energy and water infrastructure. The company is the first private Chinese firm to receive approval for a satellite IoT commercial trial, following a similar permit issued in May to Beijing Guodian High-Tech Technology, backed by state-owned China Mobile. Unlike broadband satellite systems such as Starlink and China’s Qianfan constellation, satellite IoT focuses on reliable low-speed connections for large numbers of devices in remote areas without conventional network coverage. MIIT said the trial could support further private-sector participation in commercial space development. Founded in 2018, Geespace has launched 64 satellites and conducted trials with telecom operators in more than 20 countries.
  
  
• State Council Advances Network Development and Economic Measures: Premier Li Qiang presided over a State Council executive meeting that reviewed measures on communication networks, enterprise debt payments, air quality and power safety. The meeting called for accelerating construction of a new generation of communication networks by coordinating basic, space, international and integrated networks while promoting intelligent terminals, smart cities and intelligent manufacturing. It also stressed stronger network and data security and improved emergency communication capabilities. The meeting called for accelerating efforts to clear overdue payments to enterprises, particularly those owed by large companies to small and medium-sized enterprises. It urged local governments to use special bonds and refinancing tools, strengthen oversight of payment practices and prevent new arrears. On environmental protection, the meeting called for continued efforts to improve air quality through stronger regional pollution control and adjustments to industrial, energy and transport structures. It also adopted draft regulations on emergency response and investigations into power safety accidents, emphasising risk prevention, equipment maintenance and improved emergency capabilities. The meeting further called for strengthening grassroots market supervision, improving regulatory services and maintaining fair competition.
  
  

SOCIAL MEDIA CHATTER

Weibo Users React to UN Official’s Interview on China’s Desert Greening Efforts: A Weibo post discussing an interview with Yasmin Fouad, Deputy Secretary-General of the United Nations and Executive Secretary of the UN Convention to Combat Desertification, on China’s land restoration efforts attracted significant attention. The post highlighted Fouad’s field visit to China’s ecological restoration projects, including the Taklamakan Desert greening project and the Three-North Shelterbelt Forest Program. The post prompted largely positive reactions from Weibo users to China’s desertification control and ecological restoration efforts. One user commented, “adhere to the path of green development,” while another wrote, “at present, only China has achieved desert greening.” Other users emphasised the importance of protecting the global environment and viewed China’s efforts as demonstrating a people-oriented approach to ecological development. Some users also highlighted the perceived benefits of land restoration and water-resource management, noting that the greening of desert areas had improved local environments and contributed to livelihoods. Another user described the transformation as a sign of vitality and expressed optimism about the prospects for a better life.

INDIA WATCH

Finance Sina Discusses India’s Economic Outlook and Structural Challenges: Finance Sina discussed India’s recent economic performance and the factors influencing its GDP ranking, while noting that exchange-rate movements have played a significant role. The article cited International Monetary Fund data indicating that India’s nominal GDP in fiscal year 2025-26 was about US$3.92 trillion, with the country’s global ranking falling from fourth to sixth. It noted that the depreciation of the Indian rupee, partly linked to higher oil prices and external economic conditions, reduced the dollar value of India’s GDP. The article also examined India’s longer-term economic objectives under the “2047 Developed India” vision, including expanding manufacturing and increasing per-capita income. It highlighted the continued importance of manufacturing, services and investment in supporting future growth, while noting that India faces challenges in maintaining strong employment creation alongside economic expansion. According to the article, Fitch, an international credit rating agency, expects India’s real GDP to grow by 6.4 per cent in fiscal year 2026-27. It further argued that India’s economic trajectory will depend on factors including investment, manufacturing development, employment generation and the broader business environment.

Prepared By

Arushi Sharma

Arushi Sharma is a Research Intern at Organisation for Research on China and Asia (ORCA). She is a recent postgraduate in East Asian Studies from the University of Delhi and holds a Bachelor's degree in Chinese Language from K.R. Mangalam University. She has previously worked as a Subject Matter Expert in Mandarin Language at Unacademy. Her primary research interests focus on China's domestic politics and international economic statecraft.