The Indian military launched "Operation Sindoor" on May 7, 2025, in response to the heinous terrorist attack carried out by Pakistan-linked Islamist terrorists in India’s Union Territory of Jammu and Kashmir (Pahalgam) on April 22, 2025. In light of this development, on May 10, 2025, the Director of China’s Central Commission for Foreign Affairs, Wang Yi, held a telephone conversation with India’s National Security Advisor, Ajit Doval. Director Wang Yi condemned the terrorist attack in Pahalgam and reiterated China’s “opposition to all forms of terrorism”. He noted that the current international situation is chaotic and intertwined, and called on India and Pakistan to resolve their differences through dialogue, avoid escalation, and ensure peace and stability in Asia. NSA Ajit Doval, on his part, shed light on the barbaric nature of the Pahalgam terrorist attack and conveyed India’s resolute stance on combating cross-border terrorism emanating from Pakistan.
Amidst a raging trade war, Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent met in Geneva on May 10-11, 2025, to discuss economic and trade issues. In a joint statement, both sides acknowledged the “importance of a sustainable, long-term, and mutually beneficial economic relationship” and agreed to establish a trade consultation mechanism to “move forward in a spirit of mutual opening, continued communication, cooperation, and mutual respect”.
During the 90-day period beginning May 14, 2025, Beijing and Washington agreed to lower "reciprocal" tariffs by 115 percent, effectively implying that the US will reduce its tariff on Chinese imports from 145 percent to 30 percent, and China will reduce its tariff on US imports from 125 percent to 10 percent.
However, by the end of May, uncertainty returned to the US-China trading relationship, with the US side claiming that China was reneging on commitments related to exports of rare earth minerals.
The US announced plans for the country's next-generation missile defence shield – ‘the Golden Dome for America’ - on May 20, 2025. This system aims to enhance US military capabilities and re-establish deterrence through space-based interceptors and sensors. According to China's Ministry of Foreign Affairs, the proposed Golden Dome Missile Defence System violates the principle of peaceful use of outer space and increases the possibility of turning space into a battlefield.
During his state visit to Russia from May 7-10, 2025, President Xi attended Russia's 80th ‘Victory Day’ celebrations marking the defeat of Nazi Germany in 1945. In his remarks, Xi noted that eighty years ago, global forces of justice, including China and Russia (Soviet Union), courageously fought and triumphed over Fascist powers. He added that the victory in the “World anti-Fascist War” is a source of wisdom that must be utilised to resolutely oppose rising unilateralism, hegemonism, bullying, and coercive practices.
The US tariff shock resulted in a sharp contraction in manufacturing activity in China in April 2025. To boost China’s economy, the People's Bank of China (PBOC) lowered the Reserve Requirement Ratio (RRR) for commercial banks by 0.5 percentage points, injecting CNY 1 trillion (USD 138 billion) into the economy.
To read this China Monitor, Vol. VIII, Issue 5, please see the PDF attached.
Amidst a raging trade war, Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent met in Geneva on May 10-11, 2025, to discuss economic and trade issues. In a joint statement, both sides acknowledged the “importance of a sustainable, long-term, and mutually beneficial economic relationship” and agreed to establish a trade consultation mechanism to “move forward in a spirit of mutual opening, continued communication, cooperation, and mutual respect”.
During the 90-day period beginning May 14, 2025, Beijing and Washington agreed to lower "reciprocal" tariffs by 115 percent, effectively implying that the US will reduce its tariff on Chinese imports from 145 percent to 30 percent, and China will reduce its tariff on US imports from 125 percent to 10 percent.
However, by the end of May, uncertainty returned to the US-China trading relationship, with the US side claiming that China was reneging on commitments related to exports of rare earth minerals.
The US announced plans for the country's next-generation missile defence shield – ‘the Golden Dome for America’ - on May 20, 2025. This system aims to enhance US military capabilities and re-establish deterrence through space-based interceptors and sensors. According to China's Ministry of Foreign Affairs, the proposed Golden Dome Missile Defence System violates the principle of peaceful use of outer space and increases the possibility of turning space into a battlefield.
During his state visit to Russia from May 7-10, 2025, President Xi attended Russia's 80th ‘Victory Day’ celebrations marking the defeat of Nazi Germany in 1945. In his remarks, Xi noted that eighty years ago, global forces of justice, including China and Russia (Soviet Union), courageously fought and triumphed over Fascist powers. He added that the victory in the “World anti-Fascist War” is a source of wisdom that must be utilised to resolutely oppose rising unilateralism, hegemonism, bullying, and coercive practices.
The US tariff shock resulted in a sharp contraction in manufacturing activity in China in April 2025. To boost China’s economy, the People's Bank of China (PBOC) lowered the Reserve Requirement Ratio (RRR) for commercial banks by 0.5 percentage points, injecting CNY 1 trillion (USD 138 billion) into the economy.
To read this China Monitor, Vol. VIII, Issue 5, please see the PDF attached.
