NIAS Area Studies
PAKISTAN READER
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In Brief
INTERNAL
China unveils a 19-point plan to develop a new quality productive workforce
On 10 October, CGTN reported that China unveiled 19 key measures to accelerate the development of new quality productive forces, outlined in a document jointly issued by the Communist Party of China Central Committee and the State Council on 09 October. The measures focus on innovation in science and technology, industrial development, institutional mechanisms and talent management, guided by four principles: innovation-driven development, reform as an enabler, adaptation to local conditions, and establishing the new before phasing out the old. The plan calls for strengthening enterprises' role in technological innovation, including R&D reserve funds and higher tax deductions for R&D spending, alongside the comprehensive rollout of the "AI Plus" initiative and national AI testing bases. It also proposes advancing an energy revolution, including advanced nuclear fission technologies and a renewable-heavy power system, to support carbon neutrality goals.
("China rolls out 19 measures across 5 innovation areas to advance new quality productive forces," CGTN, 10 October 2026)
https://news.cgtn.com/news/2026-10-10/China-rolls-out-19-measures-to-advance-new-quality-productive-forces-1R7ziRQWdRC/p.html
China set to resume refined fuel exports after holiday pause
On 09 October, Reuters reported that China was set to resume October refined fuel exports after a brief halt during its Golden Week holiday, according to traders, a move expected to modestly ease tight global diesel, gasoline, and jet fuel markets. Beijing approved around 3.7 million metric tonnes of exports across the three fuels for October, down from slightly over 04 million tonnes expected in September, after it began curbing exports in March to safeguard domestic supplies amid the Iran war's disruption to Middle East oil flows. Analysts said the impact would be limited as markets remained tight overall, with Middle Eastern supplies still disrupted. Chinese exports of the three fuels totalled 19 million tonnes between January and August, down 21 per cent year-on-year, according to customs data.
("China to resume October fuel exports after holiday pause, sources say," Reuters, 09 October 2026)
https://www.google.com/url?opi=89978449&q=https://www.reyear on yearsiness/energy/china-resume-october-fuel-exports-after-brief-halt-four-trade-sources-say-a=U&ved=2ahUKEwj7l9eW1a6XAxVxj-EIHbmUHsUQxfQBKAB6BAgJEAE&usg=AOvVaw1NVUA6oUpuX93zyvQa8ZzB
SCIENCE AND TECHNOLOGY
New guideline to establish a pilot base for the industrial application of AI
On 09 October, Reuters reported that China will tighten regulations on its advanced technology industries, seeking to curb investment bubbles and to ensure that AI remains “safe, reliable and controllable.” Quoting Xinhua, the cabinet's new safety guidelines would seek breakthroughs in AI theory and core technologies, strengthen computing power and data, and establish a pilot base for the industrial application of AI. The guidelines also called for stricter AI regulations, risk-warning and emergency-response systems. China will also begin implementing its “AI Plus” initiative, which uses AI to upgrade and transform traditional industries.
(“China vows to curb tech bubbles, keep AI risks in check,” Reuters, 09 October 2026)
https://www.reuters.com/world/asia-pacific/china-issues-guidelines-new-productive-forces-including-ai-2026-10-09/
CHINA AND SOUTH ASIA
Editorial - “Modi and Xi can’t bridge the India-China divide by themselves,” SCMP, 10 Oct 2026
“First, people-to-people exchanges must be bolstered through reciprocal lowering of visa restrictions and travel barriers. Delhi could resume tourist and conference e-visas and issue longer-period, multi-entry visas to Hong Kong passport holders, which would mirror Hong Kong’s 14-day visa-free entry for Indian passport holders. Given that mainland and Hong Kong passports are distinct, there need be no worry that this overwhelms the Indian mirroring system. Second, China must recognise that the widening trade deficit in its favour does its image in India no favours. Prolonged weaponisation of chokepoints could spark an unwarranted push for decoupling. Third, China and India should build working-level trust through fighting for the Global South. There are clear domains where Indian and Chinese entrepreneurs can collaborate on global public goods needed by many emerging economies, such as pharmaceuticals, renewable energy and food. Both sides must resist the temptation to impose chokepoints for strategic leverage.”
Afghanistan inaugurates new road connection to China in Badakshan Province
On 09 October, Asia Times reported that Afghanistan has inaugurated a 121-kilometre road through the Wakhan Corridor, connecting Broghil to China’s border in the Badakshan Province. The road was primarily built by Afghan engineers, with an estimated 5.5 million 121-kilometre road reflects recent Afghan criticism of Pakistan, accusing the latter of destabilising the border regions through regular airstrikes and the use of proxy groups. The new road gives China a possible alternative route to Afghanistan and the wider Central Asia region. The road can also help China reduce dependency on Pakistan and the CPEC, which has come under attack by militant groups in Balochistan. However, currently, only a small number of commercial crossings use the route, and it can also help China ("Afghan road to China tests Pakistan’s power and leverage,” Asia Times, 09 October 2026)
https://asiatimes.com/2026/10/afghan-road-to-china-tests-pakistans-power-and-leverage/
CHINA AND AFRICA
Ecobank joins China’s CIPS to expand settlement of Yuan across Africa
On 09 October, Reuters reported that Ecobank, which operates in 34 African countries, plans to join China’s Cross-Border Interbank Payment System (CIPS) to facilitate yuan-denominated transactions and strengthen financial links between Africa and China. CEO Jeremy Awori said the agreement would provide businesses with more direct settlement options. Ecobank is also negotiating with the Bank of China to jointly offer yuan settlement services. The move reflects growing African demand for alternatives to dollar-based transactions amid expanding China–Africa trade. Standard Bank and the Bank of China will jointly offer yuan settlement services, similar to other initiatives, as bilateral trade rose nearly 18 per cent in 2025.
(“Ecobank to join China's CIPS payments platform for yuan settlement,” Reuters, 09 October 2026)
https://www.reuters.com/world/asia-pacific/ecobank-join-chinas-cips-payments-platform-yuan-settlement-2026-10-09/
CHINA AND RUSSIA
Beijing gains exposure to jet-powered drone in Moscow military exercise, reports The Telegraph
On 09 October, The Telegraph reported that Russia used the Centre-2026 military exercise to share battlefield lessons from its war in Ukraine with China and six other participating countries. More than 47,000 troops trained in drone swarms, robotic systems, counter-drone warfare, and coordinated ground assaults. China allegedly gained exposure to Russia’s jet-powered Geran-4 and Geran-5 drones, which are reportedly faster and harder to intercept. Analysts believe that these lessons could influence China’s military planning for Taiwan, particularly the use of mass drone attacks to overwhelm air defences. The exercises also demonstrate deeper Russian-Chinese military integration.
(“Russia teaches China how to use its jet-powered drones,” The Telegraph, 09 October 2026)
https://www.telegraph.co.uk/world-news/2026/10/09/russia-teaches-china-how-to-use-its-jet-powered-drones/
CHINA AND EUROPE
Second EU-China trade talks result in consensus on hybrid car and rare earth exports
On 09 October, Reuters reported that China and the European Union reached an understanding to reduce Chinese hybrid and plug-in hybrid car exports to Europe by several million vehicles over the course of four years, potentially cutting shipments by more than half. The agreement seeks to address the EU’s widening trade deficit, which exceeds EUR 1 billion daily. China also agreed to improve market access for approximately EUR 4 billion worth of European exports, including car parts, olive oil and footwear, while facilitating rare earth and magnet export licences. Although European automakers welcomed the dialogue, implementation remains uncertain, and broader trade disputes persist.
(“China, EU strike deal to halve Chinese hybrid exports,” Reuters, 09 October 2026)
https://www.reuters.com/world/china/china-eu-reach-hybrid-vehicle-trade-understanding-keep-talks-alive-ev-dispute-2026-10-09/
CHINA AND THE AMERICAS
Washington condemns Beijing’s maritime activities off Taiwan as “deeply destabilising”
On 10 October, CNA reported that the United States has criticised China’s expanding maritime activities off Taiwan’s east coast, describing them as “deeply destabilising” and warning that they increase regional tensions. The concern follows the reported sighting of a Chinese maritime militia vessel in August. Taiwan suspects these activities could support preparations for a maritime blockade, potentially disrupting vital supply routes from allied countries. Washington urged Beijing to end pressure on Taiwan and pursue dialogue with its democratically elected authorities. The developments heighten concerns over regional security and freedom of navigation.
(“US says China's maritime actions off Taiwan 'deeply destabilising',” Channel News Asia, 10 October 2026)
https://www.channelnewsasia.com/east-asia/us-says-chinas-maritime-actions-taiwan-deeply-destabilising-6448331