CiCM 11th September 2025

NEWS IN CHINA

China Backs British Companies to Expand Market Presence Amid Renewed Trade Talks: Chinese Vice Premier He Lifeng met with British Business and Trade Secretary Keir in Beijing, expressing strong support for British companies to further develop in the Chinese market. He emphasized the importance of promoting stable and healthy economic cooperation between China and the UK. Keir’s visit marks a significant step as both sides resumed the China-UK Joint Economic and Trade Commission after a seven-year hiatus. According to Bloomberg, Keir is seeking a package of trade agreements that would remove barriers for British car manufacturers, secure Chinese recognition for UK education qualifications, and ease market access for a range of industries. The Department for Business and Trade estimates the proposed changes could bring over £1 billion ($1.4 billion) in benefits to British firms. The talks also highlight Prime Minister Keir Starmer’s push for pragmatic engagement with China while balancing ties with the United States. Keir noted that deeper dialogue would boost trade, strengthen security, and create channels to address sensitive issues constructively.
China Rejects Philippines’ Protest Over Huangyan Island Nature Reserve: On September 11, Chinese Foreign Ministry Spokesperson Lin Jian firmly rejected the Philippines’ protest against Beijing’s decision to establish the Huangyan Island National Nature Reserve, also known internationally as Scarborough Shoal. Lin stated that Huangyan Island is “indisputably China’s territory” and that the creation of the nature reserve is a sovereign action aimed at protecting biodiversity, maintaining ecological stability, and advancing sustainable development. He emphasized that the decision complies with both China’s domestic legislation and international law, positioning China as a “responsible major country” committed to environmental protection. The Philippines had earlier lodged a strong protest, describing China’s move as “illegal” and threatening formal diplomatic representations. Manila insists that the shoal falls within its exclusive economic zone. Responding to this, Lin argued that Philippine territorial boundaries were long defined by international treaties and have “never included Huangyan Island.” He dismissed Manila’s accusations as baseless and urged the Philippines to halt “infringing provocations and hype” to prevent further complications in the South China Sea.
Rare Back-to-Back China-U.S. Ministerial Calls Signal Push for Stability: Chinese Defense Minister Dong Jun held a video call with U.S. Defense Secretary Pete Hegseth, followed by a September 10 phone call between Chinese Foreign Minister Wang Yi and U.S. Secretary of State Marco Rubio. Analysts note that such relay-style high-level talks within 24 hours are unusual in recent years of Sino-U.S. ties. Dong Jun stressed that China and the U.S. must build a stable military-to-military relationship based on equal respect, peaceful coexistence, and recognition of core interests, particularly warning against interference on Taiwan. Hegseth, according to the Pentagon, assured that the U.S. does not seek conflict with China but reaffirmed Washington’s “vital interests” in the Asia-Pacific. Experts from Renmin University highlighted that this was the first senior military-level contact since Trump’s second term began, suggesting Washington feels an urgent need for defense communication. However, tensions remain high as the U.S. continues arms-related engagement with Taiwan and applies new economic pressures on China. Despite these frictions, both sides described the exchanges as “frank and constructive,” signaling cautious efforts to stabilize relations amid rising global uncertainties.
Beijing Expands AI Partnership Program 2.0 with Ambitious 2026 Target: Beijing has unveiled its upgraded General Artificial Intelligence Industry Innovation Partnership Program 2.0, aiming to expand membership to 1,000 partners by the end of 2026, according to an announcement at the Beijing Artificial Intelligence Ecosystem Partner Conference held during the 2025 China International Fair for Trade in Services. Launched in May 2023, the original program has already attracted over 280 companies spanning five key categories: computing power, data, models, applications, and investment. It has mapped out 32 scenario needs, offered partners about 8500P computing power support, engaged with more than 100 venture capital institutions, and created nearly 200 large-model application cases across sectors like finance, healthcare, culture, tourism, and governance. Over 40 cooperation agreements have been signed under its framework. The upgraded Partnership Program 2.0 introduces a “1+10+X” service system, emphasizing industry demand-supply connection, ten capacity-building projects, and an X-Matrix framework for cross-sector collaboration. It also includes City Tours and AI Product Experience Programs, offering free AI trial products in Chinese cities, the Beijing-Tianjin-Hebei region, and selected overseas digital economy hubs.
China Launches Pilot Program for Market-Oriented Factor Allocation Reforms: The State Council has approved the “Implementation Plan for the Pilot Comprehensive Reform of Market-Based Allocation of Factors” to be carried out across 10 regions over the next two years. The pilot areas include the Beijing Urban Sub-Center, southern Jiangsu cities, Hangzhou-Ningbo-Wenzhou, and the Hefei metropolitan area. The reform aims to deepen the market-oriented allocation of production factors such as land, labor, capital, and technology, ensuring their free flow and efficient distribution. It seeks to dismantle institutional barriers, improve factor market rules, and create equal opportunities for all types of ownership economies to participate in competition under the protection of law. Provincial governments are tasked with leading reforms by exploring new allocation methods, enhancing efficiency, and supporting emerging industries and service sectors. The plan stresses problem-oriented, locally adapted, and differentiated approaches to encourage bold innovations. The National Development and Reform Commission will oversee coordination, risk management, and evaluation to ensure replicable results, ultimately supporting high-quality development and a unified national market.

SOCIAL MEDIA CHATTER

China’s Manufacturing Industry Tops the World for 15th Year, Sparks Social Media Buzz: China has retained its position as the world’s largest manufacturing hub for 15 consecutive years, reaffirming its dominance in the global industrial landscape. Officials announced that the next stage of development will focus on transforming the country’s scale advantage into technological strength by promoting intelligent and green growth. Key initiatives include driving 70% of large enterprises through digital transformation, achieving full-chain data interconnection via the Industrial Internet, and tackling bottlenecks in core technologies such as chips and high-end equipment. The “enterprise-university-research” partnership model is already yielding results, with breakthroughs like the 10,000-ton press reducing costs by 60%. The government also plans to accelerate the “AI Plus” initiative, cultivate multi-disciplinary talent, and promote stricter green manufacturing standards to push industries further up the global value chain. On Weibo, the hashtag “China’s Manufacturing Industry Ranks First for 15 Years” has surged in popularity. Many users expressed national pride, calling manufacturing the “backbone of China’s rise,” while others emphasized the need to shift from quantity to quality. Some also raised concerns about reliance on foreign technology in sensitive areas, urging faster innovation. The debate reflects both pride and urgency in shaping China’s industrial future.

INDIA WATCH

Guancha Media Reports on India’s Rare Earth Gamble in Myanmar: Guancha has analyzed India’s reported move to collaborate with Myanmar’s Kachin Independence Army (KIA) for rare earth mining, framing it as both risky and geopolitically ambitious. Citing Reuters, Guancha highlighted that India’s Ministry of Mines has directed state-owned IREL and private firm Midwest Advanced Materials to explore Kachin’s deposits, with government funding already provided for magnet production. The commentary stressed the irony that while India aims to counter China’s dominance in rare earths, it lacks the technology and infrastructure that China commands. Guancha argued that without Chinese technical support, India’s attempts may remain symbolic. A Belgian expert even warned that scaling up production to global levels is nearly impossible in the short term. Guancha readers echoed skepticism, with many mocking India’s “ambition without capacity.” Others noted that terrain and logistics in Kachin make such ventures “strategically naïve,” comparing it to the U.S. 's failed considerations. From the Indian side, analysts argued that New Delhi cannot afford to lag behind if both China and the U.S. are eyeing Myanmar’s resources. Yet, Indian experts caution that with less than 1% global rare earth contribution, India faces a steep climb. The piece concluded by casting India’s push as a geopolitical gamble, fraught with technical and strategic challenges.

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.