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NEWS IN CHINA

• NDRC Introduces New Guidelines for Government Investment Funds: China’s top economic planning authority has introduced a trial regulation to strengthen the evaluation and management of government investment funds, aiming to improve the efficiency of public fund use and better support national strategies, industrial upgrading and innovation. Issued by the National Development and Reform Commission (NDRC), the regulation stresses the importance of assessment mechanisms in guiding funds to align with national industrial policies and the development of a modern industrial system. It also calls for stronger coordination between central and local government funds to support major national strategies, key sectors and areas where market forces are insufficient. The regulation sets evaluation standards focused on how effectively funds contribute to developing new quality productive forces, advancing technological innovation and the commercialization of research, providing long-term patient capital and improving public welfare. Other criteria include consistency with regional strategies, priority investment areas, fund efficiency and policy implementation. On the same day, the NDRC and three other departments issued guidance on fund planning and allocation, emphasizing early-stage startups, small firms and hard technologies, while banning hidden debt creation, investments in listed equity options and derivatives transactions.
  
  
• China Participates in Joint Maritime Exercises with BRICS Nations: The multinational maritime exercise “Will for Peace 2026” officially commenced at Simon’s Town Port in Cape Town, South Africa on January 10. The drill brings together BRICS nations, China, Russia, and South Africa, under the theme “Joint Actions to Ensure the Safety of Key Shipping Lanes and Maritime Economic Activities”. China’s contingent, drawn from the 48th naval escort taskforce, features the guided-missile destroyer Tangshan (Hull 122), the supply ship Taihu (Hull 889), a ship-borne helicopter and several dozen special operations personnel. Running from January 9 to 16, the exercise unfolds in two phases. The first phase focuses on port and shore activities such as the opening ceremony, ship visits, cultural exchanges, sports events and professional discussions. The second phase, from January 13 to 15, shifts to sea-based operations. Participating vessels will rehearse communication drills, formation maneuvers, maritime strikes, rescue of hijacked ships and medical evacuation by helicopter. The exercise seeks to strengthen military cooperation, improve collective responses to maritime challenges and promote regional stability while advancing the vision of a shared maritime future.
  
  
• China and EU Reach Consensus on Pricing Framework for Chinese EVs: China and the European Union have made new progress in managing trade frictions over Chinese Electric Vehicle exports, agreeing on the need for clear, general guidance on price undertakings. China’s Ministry of Commerce stated that this step is meant to address concerns in a practical and targeted way to remain consistent with World Trade Organization rules. The agreement follows several rounds of consultations held in line with the outcomes of the China-EU Summit and ongoing efforts to resolve the EU’s anti-subsidy investigation into Chinese EVs. As part of this process, the European Commission has released guidelines outlining how Chinese automakers can submit price undertaking proposals which cover issues such as minimum import prices, sales arrangements, cross-compensation mechanisms and future investment commitments in the EU. The commission noted that all submissions will be reviewed using the same legal standards, with assessments carried out fairly, objectively and without discrimination. China’s commerce ministry stated that the progress demonstrates both sides’ willingness to manage differences through dialogue and helping to stabilize global EV supply chains. Chinese industry groups welcomed the move, saying it would strengthen market confidence, support China-EU trade ties and promote cooperation in green development and technological innovation.
  
  
• Xi Jinping Calls for Effective Party Self-Governance at the CCDI Fifth Plenum: At the Fifth Plenary Session of the 20th CPC Central Commission for Discipline Inspection in Beijing, Xi Jinping called for advancing full and rigorous Party self-governance with higher standards and stronger measures.  Xi emphasized that power must be kept within the bounds of legal and institutional limits. He also urged a stronger fight against corruption. Xi noted that 2025 saw clear progress in improving Party conduct, promoting integrity and tackling corruption. He added that it is important to stay firm and address the root causes of corruption. Laws and regulations must be applied fairly, without exceptions or privileges. He asked Party organizations and officials at all levels to take concrete actions to implement the resolutions of the Fourth Plenary Session of the 20th CPC Central Committee. Xi warned that as corruption remains serious and complex, vigilance must continue and corrupt officials should have no place to hide. He further stressed the importance of keeping pace with new trends in corruption by innovating methods, improving early detection and identifying corrupt practices. He called for better coordination among all regulators, whole-process collaboration in governance and continued efforts to build a capable disciplinary and supervisory team.
  
  
• China Releases New Guidelines for Vehicle Manufacturing Penalties: The Ministry of Industry and Information Technology (MIIT) issued the ‘Discretionary Administrative Penalties  Standards Table for Road Motor Vehicle Production' to enhance regulatory consistency and fairness in enforcement. The new rules will take effect on February 1, 2026. The benchmark table specifies six major illegal acts, including concealing or falsifying information during enterprise and product approvals applications, or obtaining access through deception, bribery or other improper means. It provides detailed penalty standards and applicable conditions for each violation, giving regulatory authorities clear guidance in enforcement. The MIIT stated that publishing the table will enhance the effectiveness of industry supervision, improve the quality of administrative law enforcement and help maintain a healthy and orderly market environment. It is also expected to raise awareness among enterprises about legal compliance in production, guiding companies to operate in accordance with regulations and reducing occurrences of illegal manufacturing practices across the sector. 

SOCIAL MEDIA CHATTER

Weibo Buzzes Over Sudden Surge in iPhone 4 Prices: A post with the hashtag #iPhone4DemandSurgesTenfold has gone viral on Chinese social media platform Weibo, drawing great attention and lively discussion. The topic centers on the unexpected resurgence in demand for Apple’s iPhone 4, a model released more than a decade ago. According to recycling shop owners, the once-forgotten phone, which previously fetched only about 5 yuan as scrap, is now selling for 150 to 300 yuan. This has also led to a resale price increase of up to 60 times. Some sellers believe the surge is driven mainly by nostalgia among Apple fans, with many users reminiscing about the compact design and classic look of the device. Some netizens joked about the dramatic “sixty-fold” price rise, noting that although the increase sounds impressive, the actual selling price remains relatively modest. Others speculated about alternative reasons for the spike, including rising gold prices or rumors that certain components of the iPhone 4 might be reusable or compatible with newer models. Many users shared personal reactions, saying they still own one or even multiple iPhone 4s and are now considering selling them. Some commented that the phone now looks “tiny and cute” compared to modern smartphones, reinforcing the idea that emotional value and nostalgia are driving the trend more than actual use.

INDIA WATCH

Guancha Discusses the Need for Chinese Technology to Support India’s New Energy Sector Growth: Guancha, a Chinese media outlet, discusses Reliance Industries’ decision to suspend its lithium-ion battery cell manufacturing plans in India, after failing to obtain technical assistance from Chinese battery companies. The article, based on a Bloomberg report, notes that Reliance is one of India’s most powerful conglomerates and a key driver of the country’s energy transition. It argues that Reliance decided to suspend this project as it would have sharply raised costs and operational risks without the access to mature Chinese battery cell technology. According to Guancha, the setback underscores India’s structural dependence on China in critical clean-energy supply chains, particularly in lithium-ion batteries, where Chinese firms dominate in terms of technology, scale, and cost efficiency. Alternative options from Japan, Europe, and South Korea were assessed but deemed too expensive and difficult to localize at scale in the Indian market. The article also links the suspension to China’s strict controls on technology transfers in strategic sectors, which reportedly led a Chinese battery supplier to withdraw from talks with Reliance. It also suggests that strained China-India relations could slow India’s progress toward the project. The article further notes that Reliance has shifted focus to assembling battery energy storage systems, and concludes that India’s new energy industry will require bilateral cooperation with China to achieve carbon neutrality by 2070. 

Prepared By

Neha Maurya

Neha Maurya is a fourth-year undergraduate student at FLAME University, pursuing a major in International Studies with a minor in Public Policy. Her research interests lie in strategic studies, governance, and education policy. She aspires to engage in work that links research insights to policy outcomes.