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NEWS IN CHINA

• President Xi Jinping Delivers Speech at 26th Meeting of SCO Heads of State: Chinese President Xi Jinping attended the 26th Meeting of the Council of Heads of State of the Shanghai Cooperation Organisation (SCO), held alongside the organisation’s 25th anniversary. In his speech, Xi outlined four proposals for the SCO’s future, emphasising the need to prioritise development and promote shared prosperity among member states. He also highlighted the “Shanghai Spirit” of mutual trust, mutual benefit, equality, consultation, respect for civilizational diversity and common development. Xi described China as a key promoter of SCO cooperation and said Beijing would continue using the organisation as a platform for Belt and Road cooperation and the Global Development Initiative. He announced plans for an international AI application cooperation centre, 100 technological cooperation projects over the next three years, and further initiatives in green industries and talent development. The meeting also highlighted growing SCO cooperation in infrastructure, trade and the digital economy, including the China-Kyrgyzstan-Uzbekistan railway and China-SCO digital projects. China’s cumulative investment in other SCO member states had exceeded $84 billion by July 2025.
  
  
• Premier Li Qiang Meets US-China Business Council Delegation in Beijing: Chinese Premier Li Qiang met with a delegation from the US-China Business Council (USCBC), led by board chair Ryan McInerney, in Beijing. During the meeting, Li said China would address the reasonable concerns of US companies operating in the country and safeguard a level playing field in accordance with the law. Li called on the US side to address China’s concerns and work with Beijing to implement the outcomes of bilateral economic and trade consultations. He stressed that China-US economic and trade cooperation is based on mutual benefit and said stronger cooperation serves the interests of both sides. Highlighting China’s large and growing consumer market, particularly in smart and green consumption, Li encouraged US companies to expand their presence and engagement in China. He acknowledged that differences and frictions are inevitable given the scale of bilateral ties but said communication and consultation could help resolve them. McInerney said US businesses remain confident in China’s economic prospects and intend to expand investment, while the USCBC expressed willingness to support greater understanding and cooperation between the two countries.
  
  
• China Unveils Measures to Expand Consumer Goods Consumption: China has introduced measures to expand and upgrade consumer goods consumption, targeting total retail sales of around 60 trillion yuan by 2030. The implementation guideline, jointly issued by seven government departments including the Ministry of Commerce and the National Development and Reform Commission, aims to foster 10-trillion-yuan markets in green, smart and health-related consumption. The guideline outlines four priorities: promoting durable goods consumption, improving everyday consumer goods, supporting specialty products and encouraging demand for upgraded products. Measures include expanding automobile consumption, promoting smart homes, supporting products for elderly people and children, and encouraging green and health-oriented consumption. The initiative follows China’s first five-year plan dedicated to expanding consumption, released in July. To support domestic demand, the government plans to allocate 250 billion yuan in ultra-long special treasury bonds for consumer goods trade-ins and establish a 100-billion-yuan fiscal-financial coordination fund. According to the Ministry of Commerce, trade-in programs generated 1.1 trillion yuan in sales during the first half of 2026. Total retail sales of consumer goods reached 28.77 trillion yuan in the first seven months, up 1.2 per cent year on year.
  
  
• China-Built Space Computing Cloud Begins Regular In-Orbit Services: A China-built space computing cloud has begun providing regular in-orbit experimental services, according to its developer, Beijing University of Posts and Telecommunications (BUPT). Operating through the Tiansuan Constellation, it integrates satellite platforms, space servers, ground stations and data centres to provide users with end-to-end computing services, from task submission to results delivery. The Tiansuan Constellation, launched in 2021 by BUPT, comprises 16 low-Earth-orbit satellites and seven ground stations. It has supported orbital testing by more than 60 institutions and attracted researchers from over 50 countries and regions. The platform has also handled applications including in-orbit big-data processing and 6G communications, with more than 100 users accessing its services. Chinese officials have highlighted possible applications in emergency response, marine observation, aviation, shipping and polar expedition. The technology is also expected to support emerging sectors including satellite internet, 6G, commercial space and emergency communications.
  
  
• China Issues Guidelines to Strengthen Compliance in Overseas Automobile Competition: China’s Ministry of Commerce, Ministry of Industry and Information Technology, and General Administration of Market Supervision issued guidelines to promote orderly international development of the country’s automobile industry and strengthen companies’ compliance in overseas markets. The guidelines called on Chinese automobile enterprises to follow local laws and regulations, compete fairly and adopt transparent pricing practices when operating abroad. They advised companies to avoid excessive price fluctuations, respect the independent pricing rights of overseas dealers and agents, and ensure promotional and advertising activities are accurate and compliant with local requirements. It also outlined measures for strengthening localisation and risk management, including assessing political and economic conditions in host markets, improving product quality and after-sales services, and complying with local labour regulations. Companies were further encouraged to strengthen protections for consumer data and personal information, intellectual property and competition, while addressing overseas antitrust risks. It also called for greener and lower-carbon supply chains and emphasised that enterprises should continuously monitor changes in Chinese, foreign and international regulations when conducting overseas operations.
  
  

SOCIAL MEDIA CHATTER

Weibo Users React to Rising Prices of Older Mobile Phones: A Weibo post about the unexpected rise in mobile phone prices has gained significant attention. The post noted that while older phones are typically discounted ahead of September’s new product launches, this year rising memory chip costs have instead pushed prices upward. According to the post, from September 1, Huawei, Honor, Xiaomi and other manufacturers reportedly raised prices on several phones, with some flagship models increasing by up to 1,000 yuan and certain lower-end phones by as much as 40%. The price hikes sparked a range of reactions among Weibo users. One user described the situation as a “vicious circle” in which higher prices could reduce demand, increase inventory and further raise costs for manufacturers. Another commented, “If you don't buy it, you can save 100%.” Some users said they would replace their phone batteries and continue using their existing devices, while others suggested repairing phones before considering an upgrade. One user questioned why phones released a year ago were becoming more expensive despite having been produced before memory prices rose. Some also discussed price increases for phone accessories and noted that certain brands had not yet raised their prices.

INDIA WATCH

Guancha Discusses Rupee Recovery Amid Foreign Investment Concerns: A Guancha article discussed the Indian rupee’s recent recovery against the US dollar, attributing the movement partly to intervention by the Reserve Bank of India (RBI) in the foreign exchange market. It noted that traders estimated that the RBI sold at least $5 billion in the spot market. The article argued that the rupee continues to face external pressures, including elevated crude oil prices, which can increase India’s import costs given its dependence on overseas oil supplies. It also highlighted significant foreign portfolio outflows from Indian equities and concerns about the country’s attractiveness to overseas investors. Citing former RBI Governor Duvvuri Subbarao, the article added that measures to attract short-term foreign currency may provide temporary support but would not address longer-term challenges. It further stressed that sustained foreign direct and portfolio investment would be more important for strengthening investor confidence. The article also pointed to broader concerns, including manufacturing growth, policy uncertainty and relatively high equity valuations, as factors that could influence the rupee and foreign investment flows.

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.