CICM 7th May 2025

NEWS IN CHINA

China Implements Monetary Easing Market Support Measures: The monetary and financial authorities of China announced comprehensive supportive measures, including reductions in the policy rate and the reserve requirement ratio (RRR), to bolster economic recovery and stabilise markets amid external headwinds. Effective May 15th, the People's Bank of China (PBOC) will lower the RRR for eligible financial institutions by 0.5 percentage points, injecting approximately 1 trillion yuan in long-term liquidity, according to PBOC Governor Pan Gongsheng. Furthermore, the PBOC has decreased the seven-day reverse repo rate by 0.1 percentage points and lowered relending rates for key sectors such as tech innovation and elderly care by 0.25 percentage points. The China Securities Regulatory Commission (CSRC) has also pledged to stabilize capital markets and support listed companies, and the National Financial Regulatory Administration will expand the long-term investment pilot program for insurance funds by an additional 60 billion yuan. The PBOC has also stated that it will announce financing systems for the new development of China’s property market, and lowered interest rates on personal housing provident fund loans by 0.25 percentage points.
China Announces Sci-Tech Funding Through Innovation Bond Initiatives: China has announced a series of supportive measures to promote the issuance of sci-tech innovation bonds that enhance access to funds for technology enterprises. Announced by the People's Bank of China (PBOC) and the China Securities Regulatory Commission, the initiatives include expanding the pool of eligible issuers to include commercial banks, securities firms, and financial asset investment companies. Furthermore, measures will be implemented to improve bond issuance management, streamline information disclosures, and optimize the credit rating system. Preliminary data from the PBOC indicates that nearly 100 market entities are preparing to issue over 300 billion yuan worth of sci-tech innovation bonds, with expectations for increased participation in the future.
Xi Visits Russia on the 80th anniversary of the Great Patriotic War: President Xi Jinping's state visit to Moscow on the 80th anniversary of the Soviet Union's Great Patriotic War victory highlighted the enduring strength of China-Russia relations. In a written statement upon arrival, Xi emphasized the "right path" of bilateral interactions, characterizing the nations as "good neighbors," "true friends," and "good partners." He noted the establishment of a "spirit of strategic coordination for a new era," marked by enduring friendship and mutually beneficial cooperation. Xi asserted that this relationship contributes significantly to global strategic stability and an equitable multipolar world order. As permanent UN Security Council members, China and Russia pledged to jointly safeguard the outcomes of World War II, uphold the UN-centric multilateral system, and oppose hegemonism. Xi expressed anticipation for in-depth discussions with President Putin on bilateral cooperation and international issues, aiming to inject further momentum into their comprehensive strategic partnership.
China Unveils Advanced Superconducting Quantum Measurement and Control System: A Chinese firm, Origin Quantum, has launched Origin Tianji 4.0, a domestically developed superconducting quantum measurement and control system capable of supporting quantum computers with over 500 qubits. This fourth-generation system builds on the company's previous 3.0 version, which powers Origin Wukong, China's independently developed third-generation superconducting quantum computer, and features enhancements in scalability, integration, stability, and automation. Kong Weicheng, deputy director of Anhui Quantum Computing Engineering Research Center and head of the development team, emphasized that Origin Tianji 4.0 will improve the efficient control and accurate readout of quantum chips, thereby accelerating the R&D and delivery timelines for quantum computers.
China's Foreign Ministry Clarifies Stance on Indo-Pak Conflict: While addressing escalating tensions between India and Pakistan, Chinese Foreign Ministry spokesperson Lin Jian stated on Wednesday that China finds India's recent military operation "regrettable" and expressed concern over the evolving situation. Emphasising that both nations are China's neighbors, Lin urged both sides to prioritize regional peace and stability, exercise calm and restraint, and avoid actions that could further complicate matters. He affirmed China's opposition to all forms of terrorism. Lin indicated China's readiness to collaborate with the international community and play a constructive role in easing the current tensions. Regarding the safety of Chinese nationals and airlines, Lin stated that China is closely monitoring developments and advised vigilance and avoidance of conflict zones, offering consular assistance in emergencies. Asked about specific initiatives following India's justification for its actions, Lin noted the significant international attention on the tensions and reiterated China's commitment to promoting peace talks and maintaining regional stability, expressing hope that both sides will engage in dialogue and consultation to resolve their differences.

SOCIAL MEDIA CHATTER

Chinese Social Media Abuzz with Indo-Pak Escalation Concerns: Following Pakistan's claim of an Indian missile strike and India's confirmation of operations against terrorist infrastructure, netizens in China have engaged with the latest developments between India and Pakistan. Initial reactions on platforms like Weibo indicated a tendency to support Pakistan. One user said, “We can join hands with Pakistan to strike hard at the right time”. However, skepticism regarding claims of downed Indian aircraft also surfaced. Online discussions also touched upon broader geopolitical implications. Amidst this online activity, official reactions from Beijing have called for restraint and de-escalation, a sentiment echoed by a segment of Chinese netizens who, while showing support for Pakistan, also expressed a desire for regional stability. The active interest of the netizens was highlighted by trending hashtags such as #continuoustracking, focusing on the Indus Water Treaty and military strikes.

INDIA WATCH

Red Star News Discusses Possible Outcomes of Indo-Pak Conflict with Lin Minwang: The Red Star News in an interview with the deputy director of the Institute of International Studies at Fudan University, Lin Minwang, discussed the probable conclusions and consequences of the military clashes between India and Pakistan, where the scholar believed that the zenith of the conflict has already been witnessed. The discussions included measures taken by both sides after the Pahalgam Terror Attack, including the suspension of the Indus Water Treaty, expulsion of Pakistani diplomats, discussion of the matter in the Security Council and more. According to Lin Minwang, India's targeting of Pakistan is, to some extent, intended to divert domestic conflicts as Prime Minister Modi was facing increasing pressure to retaliate against Pakistan after the terror attack. He also stated that Indian retaliatory actions are fulfilled, as was interpreted from the communication between NSA Ajit Doval and US NSA Marco Rubio.

Prepared By

Iklavya Dev

Iklavya is currently a Second Year student pursuing undergraduate degrees in Multimedia Communication and Political Science from K.C. College, Mumbai and Indira Gandhi National Open University respectively. He is deeply interested in the realms of Public Policy, Governance and International Relations, and aspires to broaden his horizons in the same through interactive working experiences and research. His research work includes various subjects ranging from Indian Foreign Policy and Defence Studies to Social Issues and Constitutional Law.