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NEWS IN CHINA

• China Tightens Rare Earth Management with New Interim Rules: Beijing has issued new interim rules to tighten control over rare earth mining, smelting and separation, a move seen as critical for both industrial policy and environmental protection. The regulations, released on Friday by the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the Ministry of Natural Resources, aim to bring stricter oversight to one of China’s most strategic resources. The rules mandate that annual quota targets for rare earth production will be set based on national development goals, resource reserves, ecological concerns and market demand. These quotas will be allocated to firms, which must operate strictly within approved limits. Producers are also required to maintain detailed records of product flows and upload them to a national traceability system to prevent illegal mining and smuggling. Local governments have been instructed to intensify inspections and penalize violations.

• China Unveils 16 Financial Measures to Boost Fujian-Taiwan Integration: The State Financial Supervision and Administration Bureau has announced 16 new measures to strengthen cross-strait financial cooperation and support Fujian in building a Cross-Strait Integrated Development Demonstration Zone. The policy package, released on August 22, aims to expand the role of the banking and insurance sectors in promoting economic and social linkages between Fujian and Taiwan. Key measures include allowing qualified Taiwanese banks to set up legal entities, subsidiaries and branches in Fujian, while also encouraging them to invest in local banks, trust companies and financial institutions. Banks are tasked with prioritizing finances for major Fujian-Taiwan integration projects, particularly in industrial and supply chain cooperation. The initiative also focuses on sectoral cooperation in electronics, machinery, petrochemicals, agriculture and fisheries. Taiwanese residents in Fujian will benefit from easier access to mortgages for housing, improved cross-strait financial services and greater convenience in areas like Fuzhou-Matsu and Xiamen-Kinmen, advancing the goal of a “same-city living circle”.

• Suspected SASAC Body Probed Over 15.8 Billion Yuan Deal in Hubei: A major investment project in Suizhou, Hubei, has come under scrutiny after revelations that its backer may be a counterfeit state-owned entity. The “Economic Development Center of the State-owned Assets Supervision and Administration Commission (SASAC)”, now flagged by regulators as non-existent, is under investigation for falsifying its registration. Despite this, its subsidiary, Xi’an Hangtou Future Energy Industry Chain Management Co., Ltd., signed a 15.8 billion yuan deal with the Suizhou government in January 2025. The project, covering 2,500 mu, aimed to establish China’s first full-industry R&D and production base for missiles, rockets and spacecraft. Local officials touted it as a key driver of Suizhou’s aerospace ambitions, projecting annual revenues exceeding 30 billion yuan and the formation of a 100-billion-yuan aerospace cluster. Negotiations and signing were completed in just 28 days, celebrated as “Suizhou speed”. However, equity investigations revealed the project’s ultimate investor is a fabricated SASAC-linked body. The Suizhou High-tech Zone Committee confirmed that it is “verifying the situation”. Meanwhile, Jiangxi regulators are moving to revoke the fraudulent registration, exposing a broader pattern of “fake SOEs” exploiting central enterprise identities to secure projects nationwide.

• Wang Yi Pledges Stronger Ties and CPEC Upgrade During Meeting with Pakistan’s PM: Pakistani Prime Minister Shehbaz Sharif met Chinese Foreign Minister Wang Yi in Islamabad on Thursday, reaffirming the “unique and unshakable” friendship between the two countries. Sharif expressed keen interest in attending the upcoming Shanghai Cooperation Organization (SCO) Summit in Tianjin and the 80th anniversary commemorations of World War II victory in China. The two sides emphasized the need to accelerate the “CPEC Version 2.0”, expanding cooperation beyond infrastructure into agriculture, mining, energy, aviation, aerospace, IT, and industrial parks. Sharif assured Pakistan’s commitment to ensuring the safety of Chinese personnel and projects, a key concern given past security challenges. Wang Yi underlined Beijing’s readiness to deepen cooperation in Gwadar Port, high technology and connectivity, helping Pakistan strengthen its independent development capacity and resilience against external shocks. He also reaffirmed China’s support for Pakistan’s counterterrorism efforts and its modernization journey. Both leaders exchanged views on regional and international issues, highlighting their commitment to closer coordination under the All-weather friendship framework.

• China Records First Decline in National Carbon Emissions: China’s aggressive push into renewable energy is beginning to show results, with a new study reporting a 1% drop in national carbon emissions in the first half of 2025 compared to last year. The decline, detailed in analysis published by Carbon Brief, marks a continuation of the downward trend since March 2024 and suggests that China’s emissions may have already peaked years ahead of its 2030 target. The power sector, China’s largest emitter, saw a sharper 3% fall, despite electricity demand rising by 3.7% in the same period. China added 212 gigawatts of solar capacity in just six months, surpassing the U.S.’s entire installed solar capacity of 178 GW by end-2024. Wind power also grew strongly, with 51 GW added, while solar output has already overtaken hydropower and is set to surpass wind as China’s largest clean energy source this year. Experts caution, however, that to meet its 2060 carbon neutrality goal, China must accelerate emission cuts to about 3% annually, requiring sustained investment and systemic transformation.

SOCIAL MEDIA CHATTER

Social Media Reacts to Photovoltaic Industry’s Push for Fair Competition: The China Photovoltaic Industry Association (CPIA) has issued a strong call for self-discipline within the sector, urging companies to curb “vicious competition” and prioritize quality and innovation over reckless price-cutting. The initiative comes as oversupply, blind production expansion and below-cost pricing created serious disruptions in the solar industry. CPIA highlighted six commitments: adherence to anti-monopoly and pricing laws, ensuring product quality and safety, balancing production with market demand, respecting intellectual property, focusing on innovation and rationalizing overseas expansion. The association also urged local governments, financial institutions and media outlets to help regulate the market and prevent overcapacity. On Weibo, the initiative quickly went viral under hashtags like #RejectViciousCompetition and #FairCompetitionInPVIndustry, sparking heated discussion. Many users applauded the move as “long overdue” to protect smaller but innovative firms, while others expressed skepticism, calling it “empty talk unless strict enforcement follows”. Some netizens linked the initiative to China’s broader effort to stabilize industries struggling with ‘involution’. The debate reflects both public support and lingering doubts about whether market order can truly be restored amidst global concerns about China’s overcapacity.

INDIA WATCH

CGTN Highlights Developments in India-Russia Ties Despite U.S. Tariff Pressure: India and Russia have pledged to strengthen their trade partnership following a meeting between Foreign Minister S. Jaishankar and his Russian counterpart Sergei Lavrov in Moscow. The talks came amid U.S. tariffs of up to 50% on Indian goods, imposed in response to New Delhi’s imports of Russian oil. As per the article, Lavrov emphasized successful cooperation in the hydrocarbon sector, noting prospects of joint projects in Russia’s Far East and the Arctic shelf. It further states that S. Jaishankar underlined Indo-Russian ties as one of the steadiest since World War II. With regards to India-Russia ties, the article notes that both sides discussed the need to remove non-tariff barriers to boost Indian exports in pharmaceuticals, agriculture and textiles, which could help balance trade dominated by energy imports. The article also frames the meeting as evidence of India’s resolute foreign policy, stressing New Delhi’s refusal to concede to Western sanctions and continue trade with Russia.

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.