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NEWS IN CHINA 

• China Expands Tax Refund Policy to Boost Inbound Consumption: China is stepping up efforts to make shopping easier for overseas visitors by optimizing its departure tax refund policy to boost inbound consumption. The Ministry of Commerce (MOC), along with other authorities, has introduced a new policy package that expands tax refund stores, introduces random inspections for small-value claims, enables paperless processing, and strengthens refund-upon-purchase services. China has witnessed a surge in inbound travel and spending, supported by visa-free policies, improved payment systems, and initiatives like the “Shop in China” campaign. Since the introduction in 2025, the refund application has surged by 367 percent, and sales of tax-refunded goods and the amount refunded have both risen by 90 percent, according to Xie Wen of the State Taxation Administration. Officials described the latest measures as version 2.0 of the policy, focusing on making the process more accessible, faster and standardized. Under these new rules, China will encourage more eligible stores to register as departure tax refund stores, expanding these services across major businesses, tourist sites, and markets. From July 1, 2026, customs authorities will conduct random inspections for claims below 10,000 yuan while continuing full checks for higher amounts. The policy allows travelers to receive instant refunds and complete procedures at ports outside the place of purchase within 28 days. Local governments are also adapting the policy, as Beijing plans to expand its network, Shanghai installs smart systems at airports, and Shenzhen adds more locally made products.
  
  
• China’s BeiDou Industry Surpasses 1.3 Trillion Yuan and Gained Global Reach: China’s Beidou spatiotemporal industry recorded a total output value of 1.33 trillion yuan (about $195 billion), marking a milestone in its transition to high-quality growth. According to a report released by the Global Navigation Satellite System (GNSS) and Location Based Services (LBS) Association of China, the industry was described as a comprehensive system centered on the BeiDou Navigation Satellite System (BDS), integrating technologies such as remote sensing and geographic information systems (GIS), mobile communications and indoor positioning. Within this ecosystem, the satellite navigation sector, the core of BeiDou, generated 629 billion yuan in the year of 2025, reflecting steady year-on-year growth and resilience. A complete industrial chain and supply chain were established, covering chips, modules, antennas, terminals, system integration and application services with strengthened domestic capabilities and became self-reliant. Shipments of BeiDou-compatible chips and modules reached hundreds of millions, supporting a secure and robust industry supply chain, with domestic sales of BeiDou-enabled terminals exceeding 410 million units in 2025, and more than 2.2 billion BeiDou-capable devices reported to be in use nationwide. At the global level, BeiDou services and related products have been exported to over 140 countries and regions.
  
  
• China Unveils Employment Action Plan to Boost Jobs and Entrepreneurship: The Ministry of Human Resources and Social Security has issued the "Action Plan for Stabilizing Employment, Expanding Capacity and Improving Quality," outlining 18 specific measures to promote employment and entrepreneurship among key groups such as college graduates and migrant workers. The plan focuses on stabilizing employment in key industries by advancing high-quality development in manufacturing chains, cultivating SMEs clusters, and expanding job opportunities in central, western and northeastern regions, while also promoting urban renewal and modern construction to generate employment. The plan seeks to tap employment potential across sectors, focusing on the consumption sector, attracting renowned domestic consumer brands, and launching job-related initiatives. It added that the service sector has become the primary absorber of jobs, accounting for about 50% of total employment (725.04 million) by the end of 2025. Authorities aim to improve employment quality, develop new occupations, and strengthen the protection of labor rights. It highlighted stabilizing employment remains a top government priority, with the 2026 Government Work Report targeting an urban unemployment rate of around 5.5 percent and over 12 million new urban jobs, even as youth unemployment rose to 16.9 percent in March. 
  
  
• Li Qiang Emphasised AI Integration in Manufacturing During Beijing Visit: On 18th May, Chinese Premier Li Qiang conducted a research tour for advancing intelligent manufacturing and artificial intelligence integration in Beijing. During his visit, he emphasised the implementation of the instructions on developing new quality productive forces and building a modern industrial system. He noted that for this, the focus should be on promoting the deep integration of artificial intelligence and advanced manufacturing, strengthening innovation-driven development, and accelerating the growth of new drivers. He visited major technology firms, including Beijing Humanoid Robot Innovation Center Co., Ltd. and Xiaomi Automotive Technology Co., Ltd., and he was briefed on intelligent robotics, industrial applications, and manufacturing processes and observed demonstrations on research and development achievements. Li Qiang noted that the intelligent robots are important for convergence between AI and manufacturing while emphasising the strengthening of core technology research, enhancing innovation platforms and accelerating breakthroughs in key components and control systems. The role of enterprises as primary drivers of innovation was highlighted with the need to increase R&D investment, strengthen industry-academia research and promote the intelligent transformation across production and service systems.
  
  
• China Outlined Expectations Ahead of Putin’s State Visit: The Chinese Foreign Ministry spokesperson Guo Jiakun outlined expectations surrounding the upcoming state visit of Russia’s President Vladimir Putin. He noted that the visit would mark Putin's 25th visit to China. Guo highlighted that the two heads of state will exchange views on bilateral relations and cooperation across the different sectors and major international and regional issues of common concern. Guo described the China-Russia comprehensive strategic partnership of coordination for a new era as having experienced stable and in-depth development under the guidance of President Xi Jinping and President Putin. Their cooperation across various fields expanded and delivered tangible benefits to both countries and their people. Guo noted key milestones, including the 30th anniversary of the establishment of the China-Russia strategic partnership of coordination and the 25th anniversary of the signing of the China-Russia Treaty of Good-Neighborliness and Friendly Cooperation, along with the launch of the China-Russia Year of Education. China and Russia will use these occasions as an opportunity to further deepen and elevate bilateral ties, with the aim of injecting more stability and positivity in global affairs.
  
  

SOCIAL MEDIA CHATTER

US Arms Sales to Taiwan Spark Debate on Weibo: A post with the hashtag #ChinaResolutelyOpposesUSArmsSalesToTaiwan# went viral on Weibo regarding China’s opposition to United States (US) arms sales to Taiwan. It sparked widespread discussions, with users expressing largely critical views toward US actions, particularly regarding Taiwan. A major part of online users questioned the credibility of the United States, consistently highlighting what they described as a disparity between its statements and actions, while others have emphasized observing the US actions rather than words. Some netizens have also called for strong countermeasures by China, including a more assertive approach towards arms-transfer ships and accelerating unification efforts. Meanwhile, some users expressed skepticism towards diplomatic statements, measuring them mainly as symbolic and of no practical use. One user mockingly commented on the recent US-China bilateral reset, saying it represented “another round of incredibly unreliable behavior.” 

INDIA WATCH

Guancha Reports Air India Cuts International Routes Amid Rising Costs: An article published in Guancha discussed Air India implementing a major overhaul of international flights for three months due to increased operating costs caused by persistently high fuel prices. The article noted that Air India suspended several international routes, including the Delhi to Shanghai Pudong service. It added that the frequency of flights is also reduced across several routes to Chicago, Newark, Singapore, Shanghai, San Francisco, Paris, Toronto, Melbourne and Sydney. It highlighted that nearly 100 daily flights have been affected, reflecting a significant loss of business and a major contraction in airlines’ international networks. It attributed these measures to rising aviation fuel prices, which have sharply climbed to $162.89 per barrel, a major expense in operational costs. The article further reported that Airlines’ international capacity had declined, with data from OAG indicating a year-on-year drop of over 20% in April this year. The article argued that the broader impact on India’s aviation and tourism sectors, as rising airfares, currency depreciation and weakened travel demand, contributed to declining forward bookings. To mitigate the impacts of the declining international arrivals, it added that the industry stakeholders emphasised the need for structural changes, and relaxed visa policies.