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NEWS IN CHINA

• China's Medical Insurance System Thriving Under 14th Five-Year Plan: China is on track to achieve its medical insurance goals under the 14th Five-Year Plan (2021-25), having established a comprehensive system with broad access and advanced technology, officials confirmed on Thursday. The National Healthcare Security Administration reports that basic medical insurance coverage remains stable at around 95%, covering 1.3 billion people. From 2021 to 2024, nearly 20 billion medical visits received insurance reimbursements, with last year's figures 1.6 times higher than in 2020. Significant strides have been made in serious illness insurance and targeted aid for rural low-income populations, reducing medical fees by 650 billion yuan ($91 billion). Furthermore, long-term care insurance trials have expanded to cover 190 million elderly individuals, easing care expenses. The system has also embraced technological advancements, approving artificial cochlear implants and brain-computer interface applications. Support for innovative drugs has surged, with expenditures from the medical insurance fund reaching 3.9 times the 2020 level last year, and a new commercial insurance category for novel medicines was introduced. The UN has lauded China's all-citizen coverage, as the nation aims to share its healthcare expertise globally.
  
  
• China and the EU Vow to De-escalate Tensions, Boost Cooperation: China and the European Union pledged on Thursday to manage their differences positively, working to de-escalate trade tensions and strengthen bilateral cooperation amid ongoing global instability. The commitment came during the 25th China-EU Summit in Beijing, marking 50 years of diplomatic relations. President Xi Jinping met with European Council President Charles Michel and European Commission President Ursula von der Leyen, emphasising that the two major global players share no fundamental conflicts of interest. Xi urged the EU to make "right strategic choices," respect China's core interests, and avoid restrictive trade tools, while advocating for open markets for Chinese enterprises. Both sides vowed to uphold free trade, multilateralism, and collaboratively address global challenges like climate change, issuing a joint statement reinforcing Paris Agreement commitments. EU leaders affirmed their desire for stable relations and welcomed Chinese investment, dismissing notions of "decoupling." Premier Li Qiang, at a business symposium, called for closer enterprise cooperation to stabilize global supply chains, fostering new growth in areas like services, technology, and green economy.
  
  
• China's New ISF Powers PLA Modernization: China's Information Support Force (ISF) is rapidly becoming a cornerstone of the People's Liberation Army's (PLA) modernization. Recent reports from the official PLA Daily highlight the ISF's intensified joint training with other military branches, showcasing a sophisticated, integrated combat system with enhanced mobile and decentralized deployment. A key innovation involves embedding small ISF teams directly into frontline air, naval, and ground forces, providing real-time information support. This strategic shift moves away from traditional, centralized support, as demonstrated by the use of drones in training exercises to establish local signal coverage and transmit crucial battlefield data. The ISF has swiftly implemented restructuring, establishing new bases that can be rapidly deployed for coordinated network support. Crucially, the force is spearheading the integration of advanced technologies like artificial intelligence (AI) into military decision-making and combat systems, alongside developing concepts like "edge warfare." This technological push is supported by new military education initiatives, including the PLA Information Support Force Engineering University. The ISF is vital to President Xi Jinping's vision of an "intelligent military" by 2027. The force is expected to make its public debut at a military parade in Beijing on September 3, 2025, showcasing its cutting-edge capabilities.
  
  
• China Rebuts U.S. Claims on Xinjiang at UN Session: China’s Permanent Representative to the United Nations, Fu Cong, vehemently rejected U.S. accusations regarding the Xinjiang region during a recent UN Security Council meeting. Ambassador Fu stated that Xinjiang currently enjoys social stability and economic prosperity, describing it as the "best period of development ever." He condemned U.S. efforts to “sensationalize” the Xinjiang issue as a blatant attempt to interfere in China's internal affairs and impede its development, exposing what he called U.S. “hegemonic” practices and “double standards.” Fu highlighted that over 100 countries, including many Islamic nations, have publicly supported China's position at the UN General Assembly over the past six years, opposing the politicization of human rights issues for interference. He declared the U.S. strategy to contain China via the Xinjiang narrative as "bankrupt." Furthermore, Fu challenged U.S. credibility on human rights, questioning its silence on the situation in Gaza and the plight of Palestinians. He also pointed to persistent domestic problems in the U.S., such as gun violence and racial discrimination, urging Washington to address its own issues and contribute constructively to global peace.
  
  
• China Invests Billions to Fuel Consumer Goods Trade-In Program: China is significantly bolstering its consumer goods trade-in program with a substantial financial commitment. On Friday, the Ministry of Finance (MOF) announced the allocation of 69 billion yuan (approximately $9.66 billion USD) as the third installment of ultra-long special treasury bond funds for the initiative. This latest injection brings the total funds earmarked this year for the program to 300 billion yuan, a collaborative effort between the MOF and the National Development and Reform Commission (NDRC). Earlier disbursements in January and April amounted to 162 billion yuan, with the final portion set for release in October to aid local implementation. The program has already demonstrated impressive traction; as of July 16, 280 million people nationwide have applied for subsidies, propelling sales of related goods past 1.6 trillion yuan, according to NDRC data. Moving forward, the NDRC plans to optimize subsidy distribution, streamline policy execution, and reinforce supervision over product quality and pricing to maximize the program's effectiveness.

SOCIAL MEDIA CHATTER

China's Top University Scraps GPA, Sparking Debate: Peking University is set to reform its Grade Point Average (GPA) system starting in 2025. This significant reform aims to reduce student stress, promote a deeper understanding and practical application of knowledge, and stimulate innovation. Under the new system, announced by the university on July 25, 2025, course assessments will use either percentages or a pass/fail model. Notably, pass/fail grades won't be converted to GPA, and there will be no "excellent rate" target for guiding courses. To foster interdisciplinary learning and encourage students to take challenging subjects, students will also be allowed to designate one course (outside of core and major requirements) to be graded on a pass/fail basis. This news from Peking University has sparked a lively debate on Weibo. Many netizens agree that the GPA system is indeed flawed and struggles to accurately reflect a student's true university performance. However, the common sentiment is that while imperfect, there has not yet been a better alternative to evaluate academic achievement at the university level.

INDIA WATCH

UK and India Seal Landmark Free Trade Agreement: According to the Chinese news outlet CGTN, the United Kingdom and India officially signed a pivotal free trade agreement (FTA) on July 24, 2025. British Prime Minister Keir Starmer hailed the deal as the UK's most significant trade accord since its departure from the European Union. The signing took place at Starmer's Chequers residence during Indian Prime Minister Narendra Modi's visit. This comprehensive FTA is set to eliminate or reduce tariffs on 99% of UK exports to India, including key sectors like automotive and medical devices. The article points out that Starmer anticipates an annual boost of approximately $6.2 billion to the UK's GDP and the creation of 2,200 new jobs. Conversely, India will gain tariff-free access to the British market for various goods, aiming to double its UK exports by 2040. The deal also facilitates skilled worker mobility and mutual recognition of qualifications. Beyond trade, both nations unveiled 'Vision 2035,' a strategic framework to deepen cooperation in areas such as defense, security, technology, and education. The article highlights that the agreement awaits parliamentary ratification in both countries and is expected to be fully implemented by mid-2026.

Prepared By

Maheshwar S Chhaunkar

Maheshwar S Chhaunkar has completed his Bachelor's degree in Political Science and History from Sri Aurobindo College, University of Delhi. He is currently working as an IT Assistant at CENJOWS. His areas of interest include India-China relations, Indo-Pacific affairs and Asian politics.