China Monitor

The monitor features developments related to China during the month and is compiled by our research team of Amb. Biren Nanda, Senior Fellow, and Sanket Joshi, Research Associate, from open-source reports and publications.

On July 22, 2026, India’s External Affairs Minister, Dr. S. Jaishankar, and China’s Foreign Minister, Wang Yi, met in Manila, Philippines, on the margins of the ASEAN Foreign Ministers’ Meeting. They noted that bilateral relations have gradually normalised since the meetings between Prime Minister Modi and President Xi in Kazan in October 2024 and Tianjin in August 2025. EAM Dr. Jaishankar reiterated that India-China relations should be developed on the basis of mutual respect, mutual interest, and mutual sensitivity. Peace and tranquillity in border areas remain a pre-requisite for normal ties.

On July 23, 2026, the U.S. imposed a 12.5 percent tariff on imports from China under Section 301 of the Trade Act of 1974, for Beijing’s “failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labour”. Reacting to this, China reiterated that it “opposes all forms of unilateral tariffs”, including those imposed under the pretext of forced labour, and that “tariff and trade wars serve no one’s interests”. 

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng held a video call on July 30, 2026. The Chinese side expressed concern over recent economic and trade restrictions imposed by the U.S. A Xinhua report stressed that both sides agreed to fully utilise their economic and trade consultation mechanism to build mutual trust, expand cooperation, and promote China-U.S. relationship of “constructive strategic stability”. Secretary Bessent, for his part, emphasised the Trump administration's expectation that China should meet its commitments on rare-earth exports and the purchase of U.S. agricultural products. 

On July 6, 2026, the PLA Navy successfully conducted the test launch of a submarine-launched ballistic missile (SLBM) in the Pacific Ocean. Reportedly, this was China’s first publicly acknowledged SLBM test since 1982, demonstrating that its “nuclear triad”, spanning land, sea, and air, is maturing. 

Reacting to this, Mark Rutte, NATO's Secretary General, stated that NATO cannot be "naive" about China's military development, because the Indo-Pacific and Europe are becoming "more intertwined", as demonstrated by Beijing's support for Russia's war in Ukraine. Chinese state media described NATO’s hyping of China’s strategic missile test as a “pretext for seeking to expand its reach into Asia-Pacific”. 

On July 17, 2026, President Xi addressed the “World AI Conference and High-Level Meeting on Global AI Governance” in Shanghai. Xi stressed that AI must remain a key driver of shared prosperity and common security, while urging the international community to build a just and equitable global AI governance system. China and 28 other countries have established the ‘World Artificial Intelligence Cooperation Organisation’ (WAICO) based in Shanghai. 

On July 1, 2026, President Xi addressed a gathering marking the 105^th founding anniversary of the Communist Party of China. Among other issues, Xi cautioned that in China's journey towards modernisation, strategic opportunities exist along with risks and challenges. The Party must be prepared to withstand the tests of “high winds and raging waves, and even violent storms”.

To read this Issue please click China Monitor, Vol. IX, Issue 7.