China Policy Monitor No. 1646

XI JINPING MAKES RARE VISIT TO TIBET
Last month, Xi Jinping visited Lhasa to mark sixty years since the creation of the Tibet Autonomous Region. At a massive, highly choreographed ceremony in front of the Potala Palace, cadres waved flags, soldiers marched with rifles, schoolchildren clapped in unison, and dancers in colorful robes performed traditional Tibetan dances. The crowd was flanked by two giant portraits — one of Xi alone, and another of him alongside his predecessors. During the celebration, Xi – who, at 72, is the oldest PRC leader to visit Lhasa – hailed the crushing of "separatism" in the often-restive region. "To govern, stabilize and develop Tibet, the first thing is to maintain political stability, social stability, ethnic unity and religious harmony," Xi told regional officials. (CNN, August 21, 2025)

CHINA'S ICEBREAKER FLEET ARRIVES IN THE ARCTIC
Between August 5 and 7, five Chinese icebreakers and research vessels passed through the Bering Strait into the Arctic Ocean. The fleet is led by the Xue Long 2, the first Chinese icebreaker with an intelligent hull and engine room design. The vessel is equipped with a deep-sea submersible, the Jidi. The U.S. coastguard detected the Jidi in the Bering Sea on August 5 and deployed a C-130J Hercules fixed-wing aircraft to observe. According to the U.S. coastguard, the Chinese vessels came with about 537km of the Alaskan coast – the edge of the "extended continental shelf" claimed by the U.S. Over the past five years, the Xue Long 2 has conducted ten scientific expeditions to both the Arctic and Antarctic. (South China Morning Post, August 23, 2025)

CHINESE REFINERS GOBBLE UP RUSSIAN OIL AS INDIA CUTS IMPORTS
Faced with the threat of U.S. sanctions, Indian state refiners have backed out of importing 600,000–700,000 barrels per day of Russian oil. In response, Chinese refineries have stepped in to fill the gap, purchasing 15 Urals crude shipments for October and November delivery, with each shipment containing between 700,000 to 1 million barrels. While Urals crude typically ships to India, China, which ranks as Russia's largest oil buyer, generally purchases crude from Kozmino in the Russian Far East. (Reuters, August 19, 2025)

AS CHINA FINANCING STALLS, ADB BACKS PAKISTAN RAIL UPGRADE
After a decade of delays, the Asian Development Bank (ADB) has replaced China as the financier for a key railway upgrade in Pakistan. Announced in 2015 as part of Beijing's Belt and Road Initiative, revamping the 1,800 km of railways was the centerpiece of a $60 billion investment program known as the China-Pakistan Economic Corridor. The ADB has now stepped in to lead the financing consortium for the $2 billion upgrade of the 500 km railway line from Karachi to Rohri, which had been part of China's portfolio. After a competitive bidding process, the ADB will hire an international engineering contractor to carry out the work. (Reuters, August 22, 2025)

[EDITOR'S NOTE: Pakistan is struggling to repay China for other projects and has fallen behind on payments for electricity from Chinese-built power plants. Following an official report on the high cost of the power stations, Islamabad is seeking to reschedule those payments.]

CHINA'S "REDACTED" EMBASSY PLANS RAISE CONCERNS IN LONDON
China's plan for a new embassy in London has raised security concerns due to its size and location. The plans submitted to the city omitted several rooms and the basement area, which were noted as "redacted for security reasons." The planned complex, which would be the biggest embassy in Europe at 20,000 sq meters, includes offices and housing for 200 staff and a tunnel linking the buildings. China bought the site at old Royal Mint Court near the Tower of London in 2018. But its proximity to fiber optic cables has sparked fears that China could infiltrate the UK's financial system. (BBC, August 7, 2025)