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NEWS IN CHINA

• PLA Eastern Theater Command Conducts Joint Drills Around Taiwan: The Eastern Theater Command of the Chinese People’s Liberation Army (PLA) on 29 December began joint military drills around Taiwan, code-named Justice Mission 2025. The drills involve coordinated deployments of the PLA’s Army, Navy, Air Force and Rocket Force across the Taiwan Strait and areas to the north, southwest, southeast and east of the island. A spokesperson of the theater command said the drills focus on sea–air combat readiness patrols, joint operations to seize comprehensive control and blockades targeting key ports and areas. The exercises also aim to test joint operational capabilities through multi-directional approaches by vessels and aircraft. Chinese officials described the drills as a warning against “Taiwan independence” forces and external interference, framing them as measures to safeguard national sovereignty and unity.  

• China Revises Law to Regulate Use of Standard Chinese in Digital Spaces: China’s top legislature has revised the Law on the Standard Spoken and Written Chinese Language to reflect changes in communication technologies and the expansion of online content. The amended law, adopted by the Standing Committee of the 14th National People’s Congress, will take effect from 1st January. A key revision requires online cultural products, including web series, online films, games and audiovisual programmes, to use standard Chinese and standardized characters as their basic language. The law also mandates that government-run and public service websites and mobile applications comply with national language standards. In addition, the revision reinforces the role of standard Chinese in education, international exchanges and public signage, while calling for stronger oversight of language use in advertising and enterprise names. Officials said supporting regulations will be mandated to clarify implementation measures, particularly in service sectors such as tourism and transportation.

• Chinese Embassy Opposes Demolition of Friendship Park in Panama: The Chinese Embassy in Panama expressed firm opposition to the demolition of the China-Panama Friendship Park, commemorating the 150th anniversary of the arrival of Chinese people in Panama without prior notice. The Chinese embassy said the action deeply hurt the sentiments of the Chinese community in Panama and damaged the goodwill of the Chinese public towards Panamanian people. Chinese ambassador to Panama, Xu Xueyuan, said in a post that she rushed to the place upon hearing the news, but the monument was already demolished. According to local media reports, the 20-year concession for the monument has expired, and the municipality has not responded to the requests from the Chinese Association of Panama and the Chinese embassy to renovate it. The Chinese side urged an investigation into these illegal demolition acts that undermined Panama's historical heritage. The Panamanian president and several other government officials across the parties have strongly condemned the demolition. The Government of Panama ordered the Ministry of Culture on Sunday to coordinate the restoration of the monument with the Chinese community.

• China Releases Action Plan to Upgrade Digital Yuan Framework: China has released a new action plan refining the institutional framework of the digital yuan, signalling a shift towards an account-based model more closely integrated with the existing banking system. Under the updated policy, the digital yuan is positioned as a responsibility of commercial banks rather than the central bank, while the People’s Bank of China continues to provide technical support and regulatory oversight. The move is aimed at improving risk control, supporting interest-bearing features and ensuring closer integration with traditional financial operations. Authorities also further clarified the “two-tier architecture”, under which the central bank sets rules and standards while commercial banks and payment institutions handle distribution, compliance and customer services. The digital yuan held by users will be covered by deposit insurance and incorporated into the reserve requirement system, a step that officials and analysts say strengthens macroeconomic regulation and addresses concerns around off-balance-sheet circulation. The adjustments are intended to support broader adoption of the digital yuan while balancing innovation with financial stability.

• China and Malaysia Launch Skills Training Alliance to Support Industrial Cooperation: China and Malaysia launched a vocational education partnership that aims to link skills training more closely with industrial and infrastructural development. The China-Malaysia Technical and Vocational Education and Training Industry-Education Alliance was established in Liuzhou, Guangxi, which brings together 33 institutions from both the countries, including vocational colleges, universities, enterprises and research bodies. This initiative focuses on sectors such as rail transport, new energy vehicles, intelligent manufacturing and artificial intelligence. Chinese officials said the alliance builds on existing cooperation through Malaysia’s East Coast Rail Link project, which has involved training and technical support from Chinese institutions. Malaysian officials described the alliance as a platform to strengthen cooperation in workforce development and to prepare skilled workers for advanced manufacturing and digital industries.

SOCIAL MEDIA CHATTER

Milk Tea’s Comparison With ‘Quasi-Drug’ Triggers Online Pushback: A discussion around milk tea trended on Weibo after a blogger claimed that high-caffine beverages, including some popular milk tea brands like Ba Wang Cha Ji, were “skirting the line of quasi drugs”. Many netizens criticised the statement as inappropriate and misleading, with several calling it a speculation that confuses traditional Chinese tea with drugs. Some users said the comparison relied on exaggeration and conspiracy-style thinking, while others described the remarks as shameful and attention-seeking efforts. A number of comments acknowledged that milk tea can be addictive if consumed excessively, but stressed that this does not justify labelling it as a drug. Scholars quoted in C media noted that equating tea-based drink with drugs confuses basic definitions and unfairly stigmatises tea, which has a long cultural history in China. Overall, the online reaction focused on opposing the spread of unverified claims and urging more responsible discussion on health issues. 

INDIA WATCH

Chinese Media Discusses an Arbitration Dispute in India’s Energy Sector: Chinese media platform Beijing Daily reports that the Indian government has demanded substantial compensation from Reliance Industries and BP over alleged shortfalls in natural gas production from offshore fields in the Krishna-Godavari basin. The article cites a Reuters report that claims 30 billion USD as the compensation amount in a dispute ongoing since 2016. As per the article, Reliance industries extracted only 20 percent natural gas of total  recoverable reserves from D1 and D3 fields. It further argues that the said project was India’s first large-scale deepwater gas project which encountered issues such as water seepage and reservoir pressure, leading to the failure to meet targeted production. The report states that final arguments were concluded in courts in November and the tribunal is expected to announce its decision by mid-2026. The article also highlights that the decision by the tribunal may further be challenged in higher courts, indicating that the dispute is expected to remain unresolved in the short term. 

Prepared By

Mohit Singh Mehra

Mohit Singh Mehra is a Master’s student of International Relations at South Asian University, New Delhi. His academic and research interests focus on China, Himalayan geopolitics, and border dynamics, with a particular emphasis on strategic, security, and political developments in the region. He is interested in understanding how geography, power, and policy interact in shaping regional order in Asia.