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NEWS IN CHINA

• President Xi Calls for Steady Progress Towards National Rejuvenation: Chinese President Xi Jinping called on the nation to advance with confidence and take concrete steps towards achieving national rejuvenation at a reception in Beijing marking the 77th anniversary of the founding of the People’s Republic of China on 1st October. President Xi highlighted the country’s achievements in economic growth and social stability over the past 77 years. He expressed confidence in Chinese modernisation and noted that the economy had demonstrated resilience through innovation-driven and high-quality development despite mounting pressures. Additionally, he urged continued efforts to sustain economic momentum, improve livelihoods and meet annual development targets, emphasising the importance of a strong start to the 15th Five-Year Plan (2026-2030). He also reaffirmed Beijing’s commitment to the “one country, two systems” policy, supporting Hong Kong and Macao’s integration into national development while maintaining their prosperity and stability. On Taiwan, he called for deeper cross-Strait exchanges, opposition to independence and external interference, and the promotion of peaceful development towards reunification. President Xi further reiterated China’s independent foreign policy of peace and its commitment to global initiatives and building a community with a shared future for humanity.
  
  
• China and Brunei Mark 35 Years of Diplomatic Relations: Chinese President Xi Jinping and Sultan of Brunei Haji Hassanal Bolkiah Mu’izzaddin Waddaulah exchanged congratulations, marking the 35th anniversary of diplomatic relations between the two countries. President Xi highlighted the longstanding friendship between China and Brunei, noting that bilateral ties have strengthened through mutual political trust, cooperation across sectors, and people-to-people exchanges. He described their partnership as an example of mutual respect, equality and common development between countries of different sizes. Recalling Hassanal’s 2025 state visit to China, President Xi noted that both sides reached an important consensus on building a China-Brunei community with a shared future, ushering bilateral relations into a new phase. He expressed his willingness to deepen mutually beneficial cooperation, align development strategies and strengthen traditional friendship to promote regional prosperity and stability. Hassanal reaffirmed the mutual trust, respect and understanding that have characterised bilateral relations over the past 35 years. He expressed his commitment to further strengthening ties and expanding cooperation in areas including the economy, trade, investment, defence and culture. Both leaders emphasised their commitment to advancing bilateral relations and promoting shared prosperity for their peoples.
  
  
• Chinese Investment Expands Across Myanmar’s Economic Sectors: Chinese enterprises have expanded their presence across Myanmar’s economic and social sectors, strengthening bilateral cooperation in infrastructure, energy, finance and trade. The development was highlighted at the inauguration of the new council of the Chinese Enterprises Chamber of Commerce in Myanmar (CECCM) and the China-Myanmar Economic and Trade Cooperation Conference held in Yangon. Myanmar Deputy Minister for National Planning, Investment and Foreign Economic Relations Thant Sin Lwin described China as Myanmar’s largest trading partner and a major source of foreign investment, noting its importance to the country’s economic development. Officials highlighted projects such as the China-Myanmar Economic Corridor and Kyaukphyu deep-sea port for their potential to improve logistics, regional connectivity and industrial development. The article stated that Chinese investments have also contributed to employment generation, technological cooperation, improved industrial productivity and expanded electricity access. It further reported that Myanmar’s business community is seeking greater cooperation with Chinese enterprises in renewable energy, finance and other sectors. Additionally, the newly elected CECCM chairman, Industrial and Commercial Bank of China’s Yangon Branch, emphasised plans to strengthen financial connectivity, infrastructure linkages, industrial upgrading and trade facilitation to advance bilateral economic cooperation.
  
  
• ACFTU Launches Second Batch of Trade Union Officials for Grassroots Engagement: The All-China Federation of Trade Unions (ACFTU) launched its second batch of grassroots engagement activities in Beijing, deploying 28 officials across six teams for a 45-day programme to strengthen trade union outreach and support workers in new forms of employment. The initiative will focus on e-commerce livestreaming anchors, truck drivers, ride-hailing drivers and taxi drivers. Officials will be stationed in pilot cities, including Shijiazhuang, Harbin and Chengdu, as well as areas with high concentrations of transport workers in Xining, Kunming and Jinjiang. The teams will work towards six key objectives, including strengthening ideological and political guidance, expanding trade union membership, improving workers’ rights protection, advancing industrial workforce development and maintaining stable labour relations. The programme will also focus on understanding workers’ concerns, strengthening grassroots trade unions and improving services for workers in emerging employment sectors. The ACFTU has conducted similar grassroots engagement activities for six consecutive years. By the end of 2025, more than 28,000 teams had been deployed nationwide, involving over 83,000 officials. The first batch of officials in 2026 was deployed from June to July to eight platform enterprises, including Meituan, Huolala and SF Express.
  
  
• China Introduces Targeted Pro-Growth Measures to Support Economic Recovery: China has unveiled a new package of pro-growth measures, jointly announced by the People’s Bank of China (PBOC), the Ministry of Finance and other regulatory authorities. The measures include interest rate cuts, expanded lending facilities, higher relending quotas for technological innovation, agriculture and small businesses, and interest subsidies for residential mortgages. The package comes amid moderating economic growth, with GDP growth slowing from 5% in the first quarter of 2026 to 4.3% in the second quarter. Rather than relying on broad-based monetary easing, the measures focus on structural support and fiscal-monetary coordination to address lending constraints and support weaker sectors. A key component is a central government interest subsidy for eligible homebuyers, offering a 1-percentage-point annual subsidy on qualifying mortgage loans for up to five years. The policy aims to reduce borrowing costs and support housing demand, particularly in areas facing high property inventories. The PBOC has also lowered the pledged supplementary lending rate to 1.5% and expanded its coverage to include infrastructure projects such as power grids, computing networks and logistics. Relending quotas for technological innovation, agriculture and small businesses have also been increased to encourage lending and support private enterprises. 

SOCIAL MEDIA CHATTER

Weibo Users React to Factory Successors Selling Family Businesses Amid Manufacturing Challenges: A post on Weibo discussing the growing trend of second-generation factory owners selling their inherited businesses has sparked debate about the challenges facing China’s manufacturing sector. Citing cases such as Zhejiang Meida, which was sold for 1.29 billion yuan, the post highlighted declining orders, rising costs, shrinking profit margins and difficulties in sustaining family-run factories. The post also noted that some successors are opting for careers in finance and technology rather than taking over their family businesses. It questioned whether the success of some earlier-generation entrepreneurs was driven by business capabilities or favourable economic conditions. The post prompted varied reactions from Weibo users. One user commented, “Starting a business is easy but keeping it is difficult,” while another noted that “the second generation is aware of the business environment and its essence, and has a high level of cognition.” Some users expressed concern about successors being pressured to take over family businesses, particularly in challenging industries such as automobile manufacturing. Others attributed the trend to changing market conditions, excess supply, outdated products and declining profitability. Several users observed that traditional manufacturing may face difficulties attracting younger successors, with some suggesting that financial and consulting careers offer alternative opportunities.

INDIA WATCH

Guancha Discusses Chinese Automakers’ Expansion into India’s High-End Car Market: An article on Guancha, citing The Economic Times, discussed growing competition in India’s luxury car market as mainstream and Chinese automakers introduce more high-end models. The article mentioned JATO Dynamics data showing that traditional luxury brands’ market share declined from 1.1% in 2025 to 0.98% in 2026, while the share of mainstream and emerging high-end models rose from 0.12% to 0.14%. It argued that Chinese automakers, including BYD, are expanding beyond the mainstream electric vehicle segment, with BYD reportedly preparing to introduce models such as the Z9 GT and D9, while its Denza brand is expected to enter India through imports and establish dedicated high-end sales networks. The article underscored how Chinese automakers’ focus on electrification, intelligent features and rapid product development is intensifying competition for traditional luxury brands. It further noted that Mercedes-Benz is targeting higher-priced vehicles, while BMW is expanding its product range, promoting EVs and increasing local production. According to the article, electric vehicles now account for 26% of BMW’s sales in India, up from 8% two years ago. It concluded by highlighting a broader shift in India’s high-end car market, where consumer preferences are increasingly shaped by technology, features and pricing alongside traditional luxury brand identity.

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.