China

From app bans to joint ventures, the government has reset Chinese business in the country. The next step should be a structured model for sustainable engagement. The Prime Minister’s recent visit to China for the Shanghai Cooperation Organisation summit has brought renewed attention to India’s approach towards business relations with its northern neighbour. Since then, several ministers have spoken in different ways suggesting the need to reassess ties, indicating a gradual shift from the restrictive stance taken after the 2020 border clashes. That episode, marked by the Galwan incident, had strengthened the government’s resolve to curb Chinese investments. The measures that followed were wide-ranging. Over 300 Chinese apps, including TikTok, were banned. More significantly,...

By banning imports to India from Bangladesh through land ports, New Delhi has hit back squarely against Dhaka for Chief Advisor of the interim government of Bangladesh Mohammed Yunus saying that he would help turn north-east India into a captive market for China. The latest was a ban on import of certain categories of jute products including bags into India from Bangladesh from the land borders starting 13th August 2025. Imports will only be permitted through the Nhava Sheva port Mumbai. This ban has hit hard the export of garments from Bangladesh, most of which reached India through land routes to West Bengal. The closure of the land ports has also jeopardised the export of Bangladeshi garments to third countries through Indian sea ports. Kolkata Port and Nhava Sheva Port in Mu...

China’s disinflation isn’t just about cautious consumers; it’s rooted in a deeper structural imbalance. The real driver is the persistent gap between policy-fuelled industrial output and actual market demand. From February to May, CPI dipped into deflation, rising just 0.1% in June. This reflects years of unchecked capacity growth in sectors like EVs, solar, steel, semiconductors, and shipping industries prioritized for their export potential, not market viability. For two decades, China’s economic model favoured investment over consumption, with policymakers pushing production in “strategic” sectors. But without global demand discipline, this overcapacity now weighs down prices, revealing the limits of a supply-heavy growth strategy in a cooling global economy. China’s industrial ...

China is grappling with the rise of US dollar-backed stablecoins, which it sees as deepening American monetary dominance, while experimenting with yuan-pegged alternatives to boost its currency’s global reach. The state is keeping the domestic focus on its centralised e-CNY while allowing Hong Kong to trial more flexible stablecoin regimes, aiming to balance innovation abroad with strict control at home. The expanding use of US dollar-backed stablecoins in international finance is prompting concern in Beijing about their potential role in reinforcing dollar dominance. While most stablecoins are privately issued, the overwhelming majority are backed by the US dollar or dollar-denominated assets, embedding American monetary power into the emerging infrastructure of global digital fin...