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NEWS IN CHINA

• China’s Spring Festival Shopping Event Witnesses Consumption Growth: China’s Ministry of Commerce launched the “Happy Shopping for the Spring Festival” special event with relevant departments and local governments during the first two days of the Spring Festival holiday. The event created a strong festive atmosphere and delivered high sales growth nationwide. Business big data showed that average daily sales at key retail and catering enterprises rose 10.6 percent from the same period of the 2025 holiday. On February 15, visitor numbers and sales revenue at 78 major pedestrian streets and business districts monitored by the ministry increased 23.2 percent and 33.2 percent year-on-year respectively. By February 15, 2026, the consumer goods trade-in program had benefited 26.9 million people and generated 190.51 billion yuan in sales. Car trade-ins accounted for 604,000 vehicles, driving nearly 99 billion yuan in new car sales. Demand for green and smart products also surged. Service consumption grew quickly, with sharp increases in dining, hotels, car rentals and winter tourism.

• Wang Yi Calls for Reform to Strengthen Global Governance at Munich Security Conference: Foreign Minister Wang Yi, addressing the “China in the World” session at the 62nd Munich Security Conference, emphasized the urgency of reforming global governance to guide the course of history toward peace and cooperation amid a more volatile international landscape marked by unilateralism and power politics. He noted the Global Governance Initiative proposed by President Xi Jinping, calls for sovereign equality, adherence to international law, genuine multilateralism and a people-centered approach as foundational principles for a fair and more equitable international order. Wang outlined four priorities for reform: revitalizing the United Nations system as the core platform for global cooperation; enhancing coordination and cooperation among countries; practicing true multilateralism while ensuring a stronger voice for the Global South; and addressing enduring security challenges through diplomacy. He specifically called for sustained efforts toward a ceasefire and reconstruction in Gaza, urged restraint regarding Iran, encouraged stakeholders to seize dialogue opportunities in Ukraine, and emphasized respect for international law and sovereignty in Venezuela. Wang reaffirmed China’s commitment to contributing constructively to peace, stability and shared global progress.

• China Targets to Build 1.5 Trillion Yuan Tea Industry by 2030: China released new guidelines to accelerate the upgrading of its tea industry, setting a goal for the entire industrial chain to reach 1.5 trillion yuan by 2030. The guidelines were jointly issued by five government departments, including the Ministry of Industry and Information Technology. The guidelines aim to significantly improve industry quality, efficiency and competitiveness. By 2030, China plans to build a tea industry system that is well-supplied, green, intelligent and internationally competitive. Interim targets for 2028 call for steady development in major traditional tea-producing regions and further improvements in distinctive local tea industries. It also aims to modernize the industry chain, expand product varieties and enrich consumption scenarios. The guidelines include key measures such as boosting scientific and technological innovation, fostering strong market players and developing specialized tea industry clusters. It also promotes extending the use of tea-based raw materials into sectors such as home products, daily chemicals, cosmetics and health care.

• China Launches Intensified Crackdown on Tobacco-Related Crimes: China’s Ministry of Public Security has announced new measures to strengthen efforts against tobacco-related crimes at present and in the future. The ministry will carry out targeted crackdowns and rectification actions as these measures will rely on a new policing model that combines professionalism, institutional mechanisms and big data to deliver concrete results. Authorities noted that tobacco products are entering a peak sales season, increasing the risk of illegal activities. Public security departments have been instructed to closely monitor key periods around the Spring Festival and act swiftly to crack major cases. Investigations will focus on the increasingly professional, specialized and concealed nature of tobacco-related crimes. Police will expand intelligence collection through multiple channels, including administrative penalty cases, online information and ongoing investigations. The ministry also called for stronger regional cooperation to curb illicit activities. Measures such as joint operations, clustered investigations and regional campaigns will be used to dismantle criminal gangs and illegal networks. In addition, public security organs will work closely with tobacco authorities to promote comprehensive governance, disrupt black and gray industry chains, and eliminate the conditions that allow tobacco-related crimes to thrive.

• China Releases List of Domestic Systemically Important Banks: Chinese regulators recently released the list of systemically important banks, identifying 21 domestic lenders following a new assessment. The review was jointly conducted by the People's Bank of China and the National Financial Regulatory Administration, in line with the ‘Assessment Measures for Systemically Important Banks’. The list includes six state-owned commercial banks, 10 joint-stock commercial banks, and five city commercial banks. Based on systemic importance scores, they are placed into five groups, from lower to higher risk. Group 1 contains 11 banks, mainly mid-sized joint-stock and city lenders. Group 2 includes four banks such as Industrial Bank and Postal Savings Bank of China. Group 3 includes two banks, Bank of Communications and China Merchants Bank. Group 4 comprises four major state-owned lenders, while no banks were placed in Group 5, the highest category. Regulators noted that the classification will guide enhanced macro and micro-prudential supervision. Under supplementary regulatory rules, oversight will be strengthened to ensure financial stability, curb systemic risks and better support the high-quality development of the real economy.

SOCIAL MEDIA CHATTER

Weibo Erupts Over Midnight Rush for Toll-Free Highways: A post with the hashtag #NationalUnifiedOperationForTollFreeCountdown# is going viral on Weibo as drivers across China prepare for the midnight start of toll-free highway access. The trend received over 19 million views, ranking sixth in the trending search list. With the countdown underway, many motorists chose to wait inside service areas to ensure they could enter highways right as the policy took effect. One service area in Weifang, Shandong reportedly turned into a “temporary parking lot”, packed with vehicles and illuminated by continuous headlights as traffic built up hours before midnight. Some users proposed introducing an annual quota system, suggesting “2,000 kilometers or six free trips per year”, or even “3,000–5,000 kilometers per vehicle”, noting it could stimulate consumption while easing congestion. Others questioned the logic of drivers lining up before 11 PM, with one comment noting that circulating videos were taken “before 11 PM yesterday.” A few users expressed frustration with heavy traffic, commenting that they do not recommend making it free, as the traffic just gets too bad. Another user expressed worry over the overcrowded parking lot. Several called for “intelligent management” based on mileage rather than fixed time windows, while others simply urged policymakers to adjust the current approach to avoid long queues and bottlenecks.

INDIA WATCH

Sina Analyses RBI’s Sudden Tightening of Broker Lending Rules: An article in Sina reports that the Reserve Bank of India (RBI) recently tightened lending rules for capital market intermediaries, triggering a sharp sell-off in brokerage stocks and renewed volatility in Indian markets. According to the report, the new rules, set to take effect on April 1, ban unsecured lending to brokers and require all loans to be backed by collateral. The article notes that banks are also prohibited from extending funds for proprietary trading or speculative investment activities. It highlights that the move is aimed at curbing excessive leverage and cooling speculation, following earlier tax hikes on equity derivatives trading. It argues that the immediate impact has been severe as financing costs for securities firms have risen sharply, proprietary trading models face funding constraints, and overall market liquidity has tightened. The article further links the regulatory shift to broader macroeconomic pressures, including government’s record borrowing plans, foreign capital outflows and a weakening rupee. It warns that while the tighter rules are meant to stabilize the market, they could increase short-term volatility. The article concludes that the effectiveness of the policy would depend on India’s ability to restore investor confidence and balance fiscal expansion with financial stability. 

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.