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.
Continuing the high-level strategic engagement between India and China, China’s Defence Minister, Admiral Dong Jun, and India’s Defence Minister, Rajnath Singh, met on the margins of the Shanghai Cooperation Organisation (SCO) Defence Ministers’ meeting in Qingdao, on June 27, 2025. They exchanged “constructive and forward-looking” views on bilateral relations, with India expressing satisfaction at the revival of the ‘Kailash Mansarovar Yatra’ after a five-year hiatus. Defence Minister Rajnath Singh reiterated the importance of maintaining peace and tranquillity along the LAC and addressing the complex border issues through a structured framework, calling for a lasting resolution of the border dispute by revitalising the established mechanism on the issue.
Reacting to this, China stressed its intent to maintain communication with India on various issues, including delimitation negotiations and border management, noting that the “boundary question is complicated and it will take time to settle it”.
Amidst the ongoing US-China trade war, the value of rare-earth minerals exported by China in May 2025 plummeted significantly, underscoring Beijing's ability to leverage its control over critical mineral supply chains, threatening industries globally.
In light of this, on June 5, 2025, US President Donald Trump and Chinese President Xi Jinping held a phone conversation. President Xi urged Beijing and Washington to use their economic and trade consultation mechanism to seek win-win cooperation based on mutual respect and equality. He stated that China honours its commitments and urged both sides to work diligently to implement the Geneva agreement on trade issues. Xi also emphasised the importance of the US handling the Taiwan issue with caution, ensuring that separatist forces advocating for "Taiwan independence" do not provoke conflict between China and the US.
Following the Xi-Trump phone conversation, the first meeting of the US-China economic and trade consultation mechanism was held in London on June 9-10, 2025. The two sides reached a consensus on a framework to implement the Geneva agreement, particularly as China agreed to ease export controls over critical minerals essential to the American industry.
US Secretary of Defence, Pete Hegseth, spoke at the Shangri-La dialogue in Singapore on May 31, 2025. He reaffirmed the US’s strategic intent to deter aggression by “Communist China” in the Indo-Pacific. Reacting sharply, China described Hegseth’s remarks as demonstrating America’s “hegemonic logic”, “bullying”, and “Cold War mentality” that emanates from a distorted views of China’s policies in the region.
Reports have indicated that China is expanding its nuclear weapons arsenal faster than any other country, adding 100 new warheads annually. Reacting to this, China's Ministry of Foreign Affairs reiterated its adherence to the “no first use” policy regarding nuclear weapons, emphasising that the nation's nuclear capabilities are maintained at the minimum level deemed necessary for national security.
Amidst continuing trade tensions with the US, manufacturing activity in China contracted for a second consecutive month in May 2025. Chinese exporters are reportedly facing challenges in pivoting to the domestic market for products initially meant for foreign markets.
To read this China Monitor, Vol. VIII, Issue 6, please see the PDF attached.
Continuing the high-level strategic engagement between India and China, China’s Defence Minister, Admiral Dong Jun, and India’s Defence Minister, Rajnath Singh, met on the margins of the Shanghai Cooperation Organisation (SCO) Defence Ministers’ meeting in Qingdao, on June 27, 2025. They exchanged “constructive and forward-looking” views on bilateral relations, with India expressing satisfaction at the revival of the ‘Kailash Mansarovar Yatra’ after a five-year hiatus. Defence Minister Rajnath Singh reiterated the importance of maintaining peace and tranquillity along the LAC and addressing the complex border issues through a structured framework, calling for a lasting resolution of the border dispute by revitalising the established mechanism on the issue.
Reacting to this, China stressed its intent to maintain communication with India on various issues, including delimitation negotiations and border management, noting that the “boundary question is complicated and it will take time to settle it”.
Amidst the ongoing US-China trade war, the value of rare-earth minerals exported by China in May 2025 plummeted significantly, underscoring Beijing's ability to leverage its control over critical mineral supply chains, threatening industries globally.
In light of this, on June 5, 2025, US President Donald Trump and Chinese President Xi Jinping held a phone conversation. President Xi urged Beijing and Washington to use their economic and trade consultation mechanism to seek win-win cooperation based on mutual respect and equality. He stated that China honours its commitments and urged both sides to work diligently to implement the Geneva agreement on trade issues. Xi also emphasised the importance of the US handling the Taiwan issue with caution, ensuring that separatist forces advocating for "Taiwan independence" do not provoke conflict between China and the US.
Following the Xi-Trump phone conversation, the first meeting of the US-China economic and trade consultation mechanism was held in London on June 9-10, 2025. The two sides reached a consensus on a framework to implement the Geneva agreement, particularly as China agreed to ease export controls over critical minerals essential to the American industry.
US Secretary of Defence, Pete Hegseth, spoke at the Shangri-La dialogue in Singapore on May 31, 2025. He reaffirmed the US’s strategic intent to deter aggression by “Communist China” in the Indo-Pacific. Reacting sharply, China described Hegseth’s remarks as demonstrating America’s “hegemonic logic”, “bullying”, and “Cold War mentality” that emanates from a distorted views of China’s policies in the region.
Reports have indicated that China is expanding its nuclear weapons arsenal faster than any other country, adding 100 new warheads annually. Reacting to this, China's Ministry of Foreign Affairs reiterated its adherence to the “no first use” policy regarding nuclear weapons, emphasising that the nation's nuclear capabilities are maintained at the minimum level deemed necessary for national security.
Amidst continuing trade tensions with the US, manufacturing activity in China contracted for a second consecutive month in May 2025. Chinese exporters are reportedly facing challenges in pivoting to the domestic market for products initially meant for foreign markets.
To read this China Monitor, Vol. VIII, Issue 6, please see the PDF attached.
