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NEWS IN CHINA

• Purchasing Managers’ Index Rebounds in May: China's manufacturing sector showed signs of recovery in June, thanks to earlier policy efforts aimed at boosting economic growth. The Caixin General Manufacturing Purchasing Managers’ Index (PMI) rose to 50.4 from May’s 48.3, marking a return to expansion. Similarly, the official PMI improved slightly to 49.7, driven by increased production and new orders. However, challenges persist: manufacturers face falling sales prices, rising receivables, and fierce market competition, all of which are pressuring profit margins and employment. Economists urge stronger policy support in the second half of 2025, including tax cuts, lower interest rates, and reduced bank reserve requirements to ease financing for smaller firms. The People’s Bank of China pledged to intensify monetary policy and support technological upgrades. Sectors like equipment and high-tech manufacturing remained resilient, with PMIs of 51.4 and 50.9 respectively. Industrial players like Henkel China acknowledged China’s continued commitment to high-end manufacturing and sectoral transformation.

• China and EU Hold 13th Strategic Dialogue: Chinese Foreign Minister Wang Yi and EU High Representative Kaja Kallas held the 13th round of China-EU high-level strategic dialogue in Brussels. Marking 50 years of diplomatic ties and 80 years of the UN’s founding, Wang emphasized that China and the EU are partners, not rivals, with shared interests and a mutual commitment to multilateralism, peace, and open cooperation. He urged deeper dialogue, mutual respect, and collaboration to provide stability in an uncertain global landscape. Wang also reaffirmed China’s support for EU integration and strategic autonomy while stressing respect for China’s core interests, particularly on Taiwan, under the one-China principle. Kallas echoed EU commitment to the one-China policy and expressed readiness for a successful upcoming China-EU leaders' meeting. She emphasized the importance of fair, balanced cooperation and international law. Both sides exchanged views on global crises including Ukraine, the Middle East, and Iran’s nuclear issue, reaffirming dialogue as a key path forward.

• PBOC Mandates Reporting for Large Cash Purchases of Gold: Starting August 1, 2025, the People’s Bank of China (PBOC) will enforce new anti-money laundering regulations requiring precious metals and gemstone institutions to report any cash transaction of 100,000 yuan (≈ $13,700) or more. Issued under document Yinfa [2025] No. 124, the new “Anti-Money Laundering and Anti-Terrorist Financing Management Measures” obligate institutions to conduct customer due diligence based on the transaction’s nature, customer profile, and money laundering risk level. Institutions must adhere to the “know your customer” principle and report all qualifying single or daily cumulative cash transactions—including those in foreign currency equivalents to the China Anti-Money Laundering Monitoring and Analysis Center within five working days. The policy targets risk mitigation in China’s growing precious metals market, aiming to tighten controls on potential channels for illicit financial activity, especially involving gold purchases. These measures reflect China’s broader efforts to enhance financial transparency and counterterrorism financing.

• China Strengthens Role of Social Organizations to Support Graduate Employment: The Ministry of Civil Affairs and the Ministry of Education jointly issued a notice urging local authorities to enhance the role of social organizations in helping college graduates secure full and quality employment. The notice calls for developing more job opportunities, improving employment resource platforms, and refining career guidance services. Social organizations are encouraged to expand in sectors such as education, healthcare, science, culture, elderly care, and childcare, and apply to become internship bases. They are also urged to create grassroots service roles through public welfare funding and government-purchased services. The directive promotes "school-society cooperation" by encouraging collaboration between social organizations and universities, allowing students to visit enterprises and communities for real-world exposure. Special attention is given to graduates from disadvantaged backgrounds, offering them job counseling, internships, and skills training. Vocational organizations are encouraged to partner with colleges to build training bases and boost graduate employability through hands-on experience and professional development.

• China Cracks Down on Online Defamation and Enterprise-Targeted Misinformation: In a sweeping crackdown, Chinese authorities have taken legal and regulatory action against multiple social media accounts for spreading false information, defaming businesses, and profiting through intimidation. The case began in April when Pang Donglai sued influencer "Chai Duidui" for commercial defamation, demanding over 5 million yuan in damages. Founder Yu Donglai publicly vowed to shut down the company if legal redress wasn't achieved. Authorities later verified Pang Donglai’s jade business as compliant, with legal appraisals and transparent pricing. On May 17, the court froze 6 million yuan of Chai Duidui’s assets and ordered video deletions. Douyin removed 29 infringing videos and restricted the account. Other banned accounts, including "Mengqi Bi Tan" and "IoT Consulting Room", were exposed for publishing corporate trade secrets or extorting businesses. Platforms like WeChat, Weibo, and Douyin have since blacklisted or closed accounts impersonating companies or spreading slander, ensuring stricter enforcement of online content laws.

SOCIAL MEDIA CHATTER

Elon Musk Sparks Viral Storm on Chinese Social Media: After vowing to oppose lawmakers who backed a Trump-supported bill projected to raise U.S. national debt by $3.3 trillion, Elon Musk went viral on China’s Weibo with the hashtag #MuskWantsToBuildAnAmericaParty, racking up over 37 million views. Chinese netizens, who idolize Musk for his tech genius and Tesla’s deep presence in China, rallied behind him with comments like “Brother Musk, you’ve got over a billion people on your side.” The contrast between Musk’s innovation-driven image and Trump’s erratic, anti-China persona intensified online engagement. Clever memes and influencer posts turned the feud into a viral spectacle. Remarkably, the discussion was allowed to flourish on China’s tightly controlled internet hinting that censors see value in spotlighting U.S. political turmoil. For many Chinese users, the Musk vs. Trump drama offered not just political intrigue, but entertainment, symbolism, and a rare chance to openly mock American dysfunction while celebrating a Western figure they admire.

INDIA WATCH

Chinese Media Questions India’s Role in SCO: Chinese media outlets have covered remarks by senior commentator Gao Zhikai (Victor Gao), who urged India to reconsider its role in the Shanghai Cooperation Organization (SCO). Gao’s comments came after India refused to endorse the SCO joint declaration, which did not acknowledge Pakistan's accusations against India regarding the Pahalgam terror attack. He criticized India’s stance, claiming it prefers “talking about war” and is “not aligned with SCO’s spirit of cooperation.” This story reflects China’s strategic narrative, painting India as an outlier or “black sheep” within multilateral platforms like SCO, especially as tensions rise between India and Pakistan. Chinese media amplify pro-Pakistani positions, calling India’s reaction obstructionist, while also portraying China as a neutral stabilizer. India’s refusal to endorse the joint declaration was based on principled diplomacy, rejecting politicization of terrorism and resisting SCO’s bias. 

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.